The Ministry Of Industry Regarding The Rejection Of BMAD Benang China: The Ministry Of Trade's Decision Is Right

Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif. (Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) is of the view that the decision of the Ministry of Trade (Kemendag) to reject the imposition of anti dumping import duty (BMAD) on the import of certain synthetic filaments from China is the right thing.

Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arief, said that most of the domestic downstream and medium-sized textile industries currently still depend on the raw materials from imports.

"So in our opinion, the BMAD decided by the Ministry of Trade, yes, that's right," said Febri when met by reporters at his office, Wednesday, June 25.

Febri said, if building a supply chain ecosystem for the textile industry, it is not immediately carried out by building a production facility, aka a factory upstream.

However, he said, attention to the sustainability of raw materials supply chains in the medium and downstream industries still depends on imported raw materials.

"(Later) if our downstream industry can mostly be supplied by the domestic upstream industry, yes, maybe we need to consider the implementation of the right BMAD," he explained.

Previously, the Association of Indonesian Filamentary Filaments & Filament Manufacturers (APSyFI) expressed the risk of the Minister of Trade (Mendag) Budi Santoso's decision to refuse to follow up on the recommendations of the Indonesian Anti-damping Committee (KADI) regarding the imposition of Anti-damping Import Duty (BMAD) for imports of certain synthetic filament threads from China.

"A number of companies are threatened with cancellation of investment due to baseless rejection on the recommendation of KADI," said APSYFI Secretary General Farhan Aqil Syauqi in a written statement received by VOI, Friday, June 20.

Based on APSYFI data, until now there are two polyester yarn manufacturers that are closed, namely PT Sulawandafin and PT Polychem Indonesia.

Meanwhile, there are also two other companies that have partially stopped their production activities. "These producers were forced to stop because they could not compete with imported goods from China," said Farhan.

Farhan assessed that the government only cares about the downstream industry. However, according to him, the government is not indifferent to investments in petrochemical mills that produce raw materials for polyester threads such as paraxylene and terefthalate acid.