Textile Update Association There Is Revision Of Imported Goods Restrictions Rules: Protect Domestic TPT

Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmaja. (Photo: Theresia Agatha/VOI)

JAKARTA - The domestic textile and textile product (TPT) industry has not fully recovered to date.

The rise of illegal imported clothes is still considered to be the main cause of the sluggish industry.

Even so, the government has issued Regulation of the Minister of Trade (Permendag) Number 36 of 2023 concerning the Import Regulation Policy which regulates restrictions on the flow of imported goods entering Indonesia.

The regulation has now been amended by Permendag Number 3 of 2024 concerning Amendments to Permendag Number 36 of 2023 concerning Import Regulation Policy, which is valid from March 10, 2024.

Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmaja said the regulation is very important for the domestic textile industry and is expected to have a positive impact.

Jemmy assessed that Permendag Number 36 of 2023, especially those that changed the "post-border" rule to "border", could help tighten supervision for imports of goods into textiles and textile products.

The inspection of imported products by border will protect the domestic market from flooding imports of textile and garment products.

With a border mechanism, protection against Small and Medium Industries (IKM) and Micro, Small and Medium Enterprises (MSMEs) and large medium industries can be better.

"We see the prospect of a significant positive impact from the implementation of Permendag 36 of 2023. This regulation can encourage increased domestic utility for textile products. At the very least, this rule provides an opportunity for the domestic TPT industry to rise and be able to compete with legal imported products," said Jemmy at the API office, Jakarta, Monday, March 18.

In addition, said Jemmy, the regulation is expected to increase the competitiveness of domestic industries in the global market.

"We thank the government, the Ministry of Trade and the Ministry of Industry, for providing full support until this regulation is passed," he said.

Meanwhile, General Chairperson of the Indonesian Filament Filament Filament Fiber and Benang Producers Association (APSyFI) Redma Gita Wirawatasta welcomed the steps taken by the government in supporting the domestic textile industry and was committed to continuing to work together in efforts to advance the sector.

Redma assessed that in the period from 2021 to 2023, the textile industry and textile products experienced major difficulties due to flooding of textile and garment import products, both legally and illegally.

"Because of this, there was a decrease in the utilization of TPT factories by up to 40 percent of the production capacity," he said.

He added that the rise of illegal imported clothes also had a big impact on the labor sector, where around 85,000 workers were dismissed, laid off or not extended their work period.

Therefore, Redma welcomes the issuance of Permendag Number 3 of 2024 concerning Amendments to Permendag Number 36 of 2023 concerning Import Regulation Policies, which is expected to be able to boost the revival of the Indonesian TPT industry today.

Thus, the cause of the fall of the TPT industry in Indonesia at that time, namely due to lack of control, imports of products from abroad to Indonesia can be regulated and it is hoped that predatory pricing will no longer occur.

"Permendag 36 of 2023, one of which regulates the importation of TPT products, which used to be a post border, will be able to regulate and control the importation of these TPT products," he said.