The Ministry Of Industry Regarding Sri Mulyani Imposing Additional Tariffs For Cloth Imports: It Is Hoped That Competitiveness Will Increase

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif. (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) welcomes the policy of imposing Safeguard Measure Import Duty (BMTP) or safeguards for importing other floor coverings, carpets and textiles.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said the domestic industry could take advantage of the opportunity from the policy to improve its quality and quality.

"We welcome the implementation of BMTP. We hope that the decision of the Minister of Finance and the implementation (rules) can increase the competitiveness of domestically finished fabric products," Febri told reporters, quoted Thursday, August 8.

Febri said that currently the industry needs restrictive instruments to maintain the competitiveness of local industries. Moreover, in the midst of an uncertain global economic situation, there are many trade excesses that target the Indonesian market.

In fact, he considered that not all imported goods prices were cheap and would continue to be cheap in the future. It is possible that these textile producing countries will also increase their imported goods.

"Right now, imported goods are cheap, when it depends on imported goods and they with their interests, (will) increase the price of imported goods. Meanwhile, we have depended," he said.

Meanwhile, from the consumer side, the Ministry of Industry hopes that the Indonesian people will start absorbing local goods. Thus, the industry can be excited again.

"From the consumer side, we hope that consumers have started to look at domestic goods that are quite fair to see. So, the domestic industry can increase the competitiveness of its products," said Febri.

Previously, the safeguard policy was contained in the Minister of Finance Regulation (PMK) Number 48 of 2024 and PMK 49/2024 which will apply 3 working days starting from the date of promulgation, namely on Tuesday, August 6, 2024.

In this regulation, safeguards are enforced on various considerations, including the results of an investigation by the Indonesian Trade Security Committee which proves that the domestic industry is still experiencing serious losses due to the number of imports of other floor covering fabric products, carpets and textiles.

For your information, a number of textile companies in Indonesia fell and were forced to close their businesses. They also took various efficiency measures due to a significant decline in production.

Based on data from the Confederation of Nusantara Trade Unions, at least six textile factories have gone out of business and caused more than 11,000 workers to experience layoffs or layoffs.

The six textile factories are PT S Dupantex, PT Alenatex, PT Kusumahadi Santosa, PT Kusumaputra Santosa, PT Pamor Spinnning Mills and PT Sai Apparel.

Meanwhile, the West Java Province Textile Product Entrepreneurs Association noted that 22 factories have been closed in the area.

International Business and Trade Law Expert Ariawan Gunadi said the government must immediately take several strategic steps to save the textile industry in the country.

"The government needs to optimize the policy of trading remedies instruments against dumping practices carried out by China, this is very important. It can be started by implementing a safeguard policy in the form of cloth Safeguard Measure Import Duty (BMTP)," Ariawan said in a written statement, Thursday, June 27.