Ade explained the apparel industry is very sensitive to the problem of employee demo because it can cause delays of delivery to the buyer. If the operation is disrupted, the company must ship orders by air at a higher cost.
Therefore, many textile companies are relocating to Central Java which is far from the political center and has a lower minimum wage than Jabodetabek and surrounding areas.
Related export destinations, Ade said the European region is the largest market in the world after China. However, Indonesian textile products are difficult to penetrate the European market due to imposition of import duty of about 11% to 19%. Meanwhile, other textile producing countries such as Vietnam, Bangladesh and Pakistan have been exempted from import duties.
"Our hope is that the government will soon finalize the trade agreement with Europe to increase exports," he said.
Although exports in the first quarter of this year grew by 11% compared to the same period last year, Ade urged business actors to not get complacent. The competence of human resources (HR) in the textile sector should be improved in order to meet export standards and have competitiveness.
Over the past year, textile and textile products exports were valued at US $ 12.53 billion, up 5.95 percent from US $ 11.83 billion a year earlier. For this year, apparel exports are expected to grow 6% compared to 2017 exports.
INDUSTRIAL YARN & FILAMENT FIBER
Upstream textile industry also experienced increased production during the first quarter of 2018. Redma Wirawasta, Secretary General of Indonesian Filament and Filament Yarn Producers Association (APSyFI), said that in the period of January - March 2018, the fiber and filament yarn industry is still growing at 8% annually.
"Growth is driven by domestic demand, there is still a tightening factor in wholesale imports and other imports, so domestic consumers are still looking for local products," he said.
However, for the next quarter, the association is concerned that imports will start to enter, especially imported fabrics from the Bonded Logistics Center. According to Redma, this is because importers are very facilitated by the Ministry of Trade through Permendag 64/2017.
He judged by the rule, the government is less supportive of the industry and more favorable to traders. In fact, continued Redma, local woven and knit fabric manufacturers are ready to supply raw materials for IKM.
Therefore, the industry reminds the government to back up the national industrial sector which is the main support of the economy. Redma said that after the import curbing policy, TPT industry's performance in the second half of 2017 increased to 2.5% growth from the previous year which was still negative.
"Second semester of last year local producer sales rose an average of 30%, this is because imported goods can not enter," said Redma.