The Ministry Of Industry Asks For The Development Of The Electronic Industry And Production Of Microchips Not To Victim The TPT Sector

The photo archive - Workers complete the production of sarongs at the textile factory of the Majalaya Industrial Estate, Bandung Regency, West Java/ANTARA PHOTO/Raisan Al Farisi/wsj/aa.

JAKARTA - The Ministry of Industry (Kemenperin) said that the textile and textile product (TPT) industry is a sector that will continue to be developed.

Various TPT industrial development policies are contained in the National Industrial Development Master Plan (RIPIN), National Industrial Policy (KIN) and Making Indonesia 4.0.

Of these several policies, the Ministry of Industry has taken various steps, including facilitating the continued development of technology centers and innovation centers to increase the competitiveness of the textile industry.

In addition, improving the capabilities, quality and efficiency of the TPT industry. Including, small and medium industries through design training and process technology to realize the green industry.

"So, the roadmap also aims to restore the glory of the national TPT industry as in its time," said Ministry of Industry Spokesperson, Febri Hendri Antoni Arief, quoted from the official website of the Ministry of Industry, Saturday, June 22.

The TPT industry will still be the mainstay of manufacturing for employment, especially workers who are high in skills following the development of world TPT technology.

"There is nothing in the Ministry of Industry's roadmap (RIPIN, KIN and Making Indonesia 4.0) which states that the TPT industry is directed towards sunset industry. On the contrary, the TPT industry is encouraged to become a strong and competitive industry with the application of 4.0 technology," he said.

The TPT industry together with electronics and the microchip manufacturing industry are industries that must also continue to be developed together to support the national manufacturing industry.

The three industries have a major contribution to the Indonesian economy, especially the TPT industry which is able to absorb high labor.

"Therefore, the advancement of one of these industrial sectors should not sacrifice the other industry. Do not let the TPT industry be substituted with electronics and the manufacture of microchips because the industry is equally important. So, one should not be sacrificed," said Febri.

Febri said the national TPT industry was successfully accelerated thanks to the Regulation of the Minister of Trade Number 36 of 2023 concerning Import Policy and Regulation.

"Since the implementation of Permendag 36/2023, the performance of the TPT industry has grown well. So, never assume that the TPT industry cannot rebound or be considered a sunset industry," he said.

In the first quarter of 2024, the TPT industry contributed 5.84 percent of GDP in the manufacturing sector and contributed to national exports of 11.6 billion US dollars with a surplus of 3.2 billion US dollars.

The effectiveness of the implementation of Permendag 36/2023 can also be seen from the GDP of the Textile and Jadi Clothing Industry, which throughout 2023 grew negative, having grown positively by 2.64 percent (yoy) in the first quarter of 2024.

This growth is also in line with the Industrial Trust Index (IKI) in the textile industry and the finished clothing industry which continues to increase.

Especially for the textile industry, in April and May 2024 there was an increase to reach the position of expansion for the first two consecutive months since IKI was released in November 2022.

IKI is an indicator that shows industry players' optimism about business conditions in the next six months. Even so, currently the conditions on the ground are different from the termination of employment (PHK) in several TPT industrial companies.

His party requested that the coordination of policy makers in ministries/agencies related to the national TPT industry be always strengthened to achieve the target in the roadmap related to the TPT industry.

"Strengthening coordination, especially by increasing the sensitivity of policy makers to the urgency of the problem of flooding in downstream products that are currently being faced by the TPT industry," he added.