The rupiah continued to weaken against the US dollar, observed in the afternoon session around Rp. 14,760. This is recognized to have an impact on industries that still rely on the supply of imported raw materials or auxiliary materials.
Including the textile industry. Because there are still raw materials that must be imported from abroad, so entrepreneurs have to spend more to make up for raw materials from abroad at the high exchange rate.
Chairman of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI) Redma Gita Wirawasta said the two raw materials that still had to be imported from abroad were cotton.
"Perhaps the effect for those who use cotton raw materials is 100% imported, and also those who use cotton base," said Redma, Thursday (16/6/2022).
So if there is an increase in prices, it is likely only for textile products with cotton base and cotton. Although according to him the impact is significant.
"Because the finished textile product is a combination of many raw material compositions. For example, cotton with polyester or rayon, so it's not significant," he said.
Moreover, according to him, currently, the Indonesian upstream textile industry is also good. So that the overall weakening of the rupiah has not had a significant impact.
Where domestically produced polyester and rayon raw materials have been widely used. Likewise with imports of cotton whose consumption or imports from abroad also decreased from year to year.
"Our imports have decreased, cotton consumption in 2021 will be 600-700 thousand tons, now it's only 500 thousand tons. Intermediate raw material fabrics have been pushed for domestic products. So the impact is not too big," explained Redma.