Chairman of IKATSI Suharno Rusdi stated that the 20.71% figure was more influenced by the increase in the value of garment exports, while the conditions occurring in the production sector of fiber, yarn and fabric actually showed the opposite condition. "So the statement of several parties that the national textile and textile product (TPT) industry is in good condition is 100% invalid" Rusdi stressed.
IKATSI statement delivered yesterday morning (Monday, September 9, 2019) in the Textile Media Gathering activity was also agreed by the Deputy Chairperson of the Indonesian Chamber of Commerce and Industry, General Chairperson of the Indonesian Filament and Fiber Yarn Producers Association (APSyFI), General Chairperson of the Indonesian Textile Association (API) and Regional API Representatives and business representatives from upstream to downstream.
To immediately save the TPT industry, IKATSI asked the government to immediately stop importing temporarily until there was an improvement in import regulations through the revision of Ministerial Regulation 64/2017 which was considered as one of the root causes of the problem.
"We have written to the President and several related ministries to improve this situation," Rusdi explained.
The IKATSI proposal in brief is as follows:
1. Short Term (6 Months): Rescue of the National TPT Industry
• Stop TPT import permits except for export purposes through Bonded Zone (KB) and Ease of Importation of Export Purposes (KITE).
• Revised PERMENDAG 64 of 2017.
2. Medium-term (3 years): Recovery and Control of Domestic Market (Import Substitution) through the implementation of trade remedies.
3. Long-Term (5 Years): Increasing Competitiveness to Encourage Exports by carrying out an agenda to increase competitiveness in the Raw Materials, Energy, HR, Technology, Finance and Environment sectors.
Reforming the TPT sector is a strategic step for the government to make the trade balance positive again and prevent other adverse macroeconomic impacts. "If the sector is sick, the government balance of payments will be affected, the banking sector will be affected, BPJS deposits and electricity payments will also be affected, so it must be corrected immediately before it's too late," Rusdi said