JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita emphasized that his party is ready to follow up on alleged mafia practices that are accused of causing the slump of the national textile and textile (TPT) industry.
Agus asked the parties who accused the existence of the mafia to report concrete evidence to the Ministry of Industry (Kemenperin) so that they could be dealt with immediately.
"If there is a mafia in our office, tell us, don't cover it up. Tell us what his name is, we will definitely clean it up. We have no doubts about taking firm steps," Agus said when met at the JCC, Friday, August 22.
He did not deny that import regulations were needed to ensure the availability of downstream industrial raw materials for the TPT.
According to him, the supply of raw materials upstream and intermediate should not experience a shortage because it will disrupt the sustainability of the downstream industry.
"In principle, the raw materials upstream and intermediate should not be infficient. There must be, the principle is like that," he concluded.
The Minister of Industry's statement was in response to the Alumni Corps of the Islamic Student Association (KAHMI) Rayon Textile who questioned the government's policy of opening the tap for importing yarn and fabrics in the midst of the TPT industry being depressed.
KAHMI Executive Director Rayon Textile Agus Riyanto assessed that many companies were closed and layoffs because they were unable to compete with imported goods.
"This means that the import quota issued by the Ministry of Industry has consumed the portion of local products in the domestic market," Agus said in a written statement received by VOI, Thursday, August 21.
Based on data from the Central Statistics Agency (BPS), the imports of yarn and fabrics in 2016 were only 230,000 tons and 724,000 tons, respectively. However, in 2024, the imports of these two products have reached 462,000 tons and 939,000 tons, respectively.
The textile import quota was issued by the Ministry of Industry through Technical Considerations (Pertek) based on the Import Commercial Procedure Regulation from the Ministry of Trade (Kemendag).
In this case, Agus explained, not a few complaints from local industries about the import quota they submitted were generally only given less than a third of their production capacity per year.
"Industrial needs from imports are only given 30 percent, but import data has increased. So who will give a large import quota?" asked Agus.
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Di sisi lain, Sekretaris Jenderal Asosiasi Produsen Serat dan Benang Filamen Indonesia (APSyFI) Farhan Aqil Syauqi menyoroti kontribusi sektor TPT terhadap produk domestik bruto (PDB) setiap tahunnya terus turun dari 1,16 persen pada 2016 hingga hanya 0,99 persen di 2024.
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On the other hand, Secretary-General of the Indonesian Filament Filament Filament and Fiare Manufacturers Association (APSyFI) Farhan Aqil Syauqi highlighted that the contribution of the TPT sector to gross domestic product (GDP) every year continues to fall from 1.16 percent in 2016 to only 0.99 percent in 2024.
Not only that, the trade balance of TPT also fell from US$3.6 billion in 2016 to only US$2.4 billion in 2024.
"Even in terms of volume, our trade in TPT has been minus 57,000 tons since 2017 and the deficit continues to grow because import growth is higher than export growth," he said.
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