Ministry Of Industry Says Textile Industry Performance Is Starting To Rise, Here's The Proof

Secretary of the Directorate General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Kris Sasono Ngudi Wibowo (second from the left). (Photo: Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) said that the performance of the textile industry began to improve in August 2024.

This was conveyed by the Secretary of the Directorate General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Kris Sasono Ngudi Wibowo during the release of the Industrial Trust Index (IKI) August 2024 at the ASTON Sentul Lake Resort & Conference Center, Bogor, West Java, Thursday, August 29.

"We need to convey that the textile in August 2024 is contracting, but it is almost close to the actual 50," he said.

Kris said the textile industry was starting to improve due to the issuance of two new rules. First, cloth Safeguard Measure Import Duty (BMTP) on August 9, 2024. The two carpet safeguards will take effect on August 16, 2024.

"This is what makes the textile industry competitive again," said Kris.

Seeing this, Kris is optimistic that in the future the textile industry will be even better. Moreover, in November this year there will be simultaneous regional elections.

He hopes that the simultaneous regional elections can increase demand for textile products and finished clothes for candidate pairs and props.

When asked further what percentage of the impact of the increase was, Kris said that his party had not calculated the amount of absorption in the Pilkada.

The Ministry of Industry noted that the Industrial Trust Index (IKI) in August 2024 reached 52.40. This figure is stagnant compared to IKI the previous month.

"IKI in August 2024 reached 52.40, there is no difference with the value of IKI July 2024. However, it slowed down by 0.82 points compared to last August IKI's value of 53.22," said Ministry of Industry spokesman Febri Hendri Antoni Arif.

According to Febri, of the 23 sub-sectors of the manufacturing industry, there are 20 sub-sectors experiencing expansion and 3 contraction sub-sectors.

A total of 20 expansion sub-sectors contributed 94.6 percent to the GDP of the non-oil and gas processing industry in the second quarter of 2024.

Meanwhile, the 3 contraction sub-sectors are the textile industry, the paper industry and paper goods as well as other processing industries.

"The textile industry is still contracting for three consecutive months starting in June, since the enactment of the Minister of Trade Regulation 8 of 2024. Likewise, the paper industry and paper goods contract for two consecutive months and other processing industries have turned into contractions," he said.

"The paper industry and paper items have contracted because we consider that there is a flood of imports of paper goods from oversupply paper producing countries," added Febri.