IKATSI accused PERMENDAG 64 of 2017 of providing access to control without control to API-U holders (traders) through the Bonded Logistics Center (PLB) as the main cause of the current downturn in the textile industry. As a result, during 2018 imports jumped 13.9% (yoy) from USD 8.8 billion to USD 10.02 billion and caused the trade balance to fall by 25.6% (yoy) from USD 4.3 billion to USD 3.2 billion . "Because in PERMENDAG 85 in 2015 previously, those who were allowed to import were producers (API-P) for the benefit of their own raw materials," Suharno said.
"This is the condition of the worst TPT trade performance in the last 10 years, if the government seriously improves the trade balance, President Jokowi must immediately intervene and save the national textile industry" he said. Because IKATSI suspects several bureaucratic elements also come into play and have an interest in smoothing imported goods into the domestic market.
IKATSI proposed that PERMENDAG 64/2017 be revoked immediately and returned to PERMENDAG 85/2015. Further evaluation needs to be done so that the functions and roles of the PLB are returned as providers of raw materials that cannot be produced domestically, rather than being red carpet for imported goods so that industry National TPT is pressed as it is today.
IKATSI is very interested in encouraging the improvement of the performance of the national textile industry because it is related to the interests of its members. So that his party will continue to urge the government to revise PERMENDAG 64/2017 immediately and the PLB to immediately evaluate the lost and its benefits for the industrial sector.
Secretary General of the Indonesian Fiber and Filament Yarn Makers Association (APSyFI) stated that after Lebaran demand for fiber and filament yarn continued to weaken. Manufacturers of woven and knit fabrics which are users of filament yarn confirm that they have difficulty selling their products due to the flood of imported fabrics in the domestic market.
This condition forced APSyFI members to cut production by 20%. "The yarn manufacturing and fabric production sector also has an average utilization of only 50% -55%," Redma explained.
APSyFI regrets that the industrial sector which is a priority in generating foreign exchange and absorbing labor actually shows the opposite performance. Previously, the textile industry had never been in such a bad position.
For that Redma requested that President Jokowi intervene and firmly save the textile industry. "The case of Duniatex default is an initial reflection of the current condition of the textile industry, if not immediately rescued, other companies will follow," Redma said.