Secretary General of Indonesian Filament and Filament Yarn Association (APSyFI) stated that imported goods will be dominated by ready-made garments and some fabrics. "Indonesia is a haven for imported goods, its consumption is large, the purchasing power of its people exists, the door is wide open because the government seems to be pro imported goods compared to local production" Redma explained.
After the bulk import curbing, Textiles industry performance in 2nd semester of 2017 rose to total growth to 2.5% from the previous year which was still negative. "Semester 2 last year local producer sales rose an average of 30%, this is because imported goods can not enter" said Redma.
However, it was issued Permendag 64 2017 that facilitated traders to be able to import on the grounds as a raw material for SMEs, whereas Permendag 85 2016 only allows producers to import. "This is proof that the government is pro traders and does not understand the industry as well as proof that the lobby of importers traders are very strong" he said. "Manufacturers of local woven and knit fabrics are well prepared to supply raw materials for SMEs" he added.
Toward the Lebaran 2018 where domestic consumption doubled, predicted imported goods will start to flood the local market. "Quarter 1 public consumption is estimated to reach 400 thousand tons, Q2 can reach 800 thousand tons or equivalent to Rp. 86.4 trillion, "Redma explained. "Even for the sake of welcoming these imports we hear the discourse that Customs will memposh-borderkan supervision of the textile sector" he added.
From this series of policies APSyFI believes that the Government is very pro and facilitates imported goods. "Wholesale imports are closed, imported six months, exit Permendag 64 which facilitates traders to import and then Customs Duty will import imported goods, little by little the import door is widened again, while domestic product competitiveness is left" explained Redma.
For APSyFI this kind of policy is economic poison, because the product is worth Rp. 86 trillion if done by local producers will absorb millions of workers and save foreign exchange. "Red carpet should be given to domestic products, not for imported products" he concluded.