NEWS

Illegal Import Pressure Looms Over Indonesian Textile Industry During Chinese New Year And Eid 2025

The local textile industry is predicted not to experience a significant surge during the Chinese New Year and Eid 2025 celebrations. According to the General Chairperson of the Indonesian Filament Fiber & Yarn Producers Association (APSyFI), Redma Gita Wirawasta, this is due to the dominance of imported goods that have controlled more than half of the domestic market. The abundant stock of imported goods makes consumers prefer these products over local textiles.

Redma explained that although public consumption during the celebration moment may increase by more than 4%, the real growth of the industry will still be negative. He criticized statistical calculations that often do not reflect the actual conditions, considering that many illegal imports are considered domestic products.

The contribution of the textile sector to Indonesia's GDP is also expected to fall drastically, from 1.1% to below 1%, along with the continued decline in production capacity utilization and the trend of company closures. The main factor that worsens this condition is the rampant illegal imports that are not detected due to the weak Customs supervision system.

Redma highlighted the need for fundamental reforms to the import supervision system. He proposed the implementation of technology such as AI scanners integrated with big data, as implemented in developed countries. In addition, the limited number of scanners at Indonesia's main ports, such as Tanjung Priok, exacerbates the situation and opens up opportunities for manipulation.

APSyFI urges the government to immediately stop illegal imports and improve the performance of Customs. If improvements are difficult to make, Redma suggested that the system be replaced with Pre-Shipment Inspection, where containers are inspected in the country of origin before entering Indonesia.

He also highlighted the need for firm action against individuals involved in violating the supervision system. Without concrete steps, the future of the national textile industry is seen as increasingly bleak, with the risk of local products being increasingly marginalized by the dominance of imported goods.