The Performance Of The Majority Of Textile Issuers Has Dropped, Here's APSyFI's Response

The textile and textile products (TPT) industry will still be quite challenging until mid-2023. This is reflected in the financial performance of a number of textile issuers which experienced a decline in the first semester.

For example, PT Sri Rejeki Isman Tbk (SRIL) experienced a decrease in net sales of 52.16% year on year (YoY) to US$ 166.91 million in semester I-2023. The issuer, known as Sritex, also experienced an increase in net loss attributable to the parent entity by 30.76% YoY to US$ 78.73 million.

PT Indo-Rama Synthetics Tbk (INDR) also experienced a decline in financial performance. INDR's net revenue shrank 22.62% YoY to US$ 398.75 million at the end of the first half of 2023. INDR also had to bear a net loss attributable to owners of the parent entity of US$ 17.61 million in the first semester. Meanwhile, in the first semester of 2022, the company still earned a net profit of US$ 54 million.

The decline in performance must also be felt by PT Asia Pacific Fibers Tbk (POLY). As of semester I-2023, POLY's revenue has eroded 24.83% YoY to US$ 156.67 million. POLY also suffered a net loss attributable to owners of the parent entity of US$ 14.43 million, even though in the first semester of 2022 they were still able to make a net profit of US$ 12.48 million.

Meanwhile, PT Pan Brothers Tbk (PBRX) experienced a 10.99% YoY sales decline to US$ 263.49 million in the first half of 2023. Luckily, PBRX was still able to record an increase in net profit attributable to owners of the parent entity by 73.28% YoY to US$ 6.29 million.

Chairman of the Association of Indonesian Fiber and Filament Yarn Producers (APSyFI) Redma Gita Wirawasta assessed that the decline in the financial performance of most textile issuers could not be separated from the condition of the industry which was filled with uncertainty.

Until now, demand for exports of textile products is still weak due to the recession experienced by several export destination countries. In fact, many TPT companies in the country rely heavily on export sales to support their performance.

There are no definite signs when export market conditions will improve in the remainder of the second half of this year. "As long as there are tensions between Russia and Europe that have an impact on Europe, plus tensions in the Indo-Pacific, it seems that the export market will still be under pressure," he said, Tuesday (22/8).

The only hope that can become a momentum for improving the performance of the textile industry lies in the domestic market. Unfortunately, even now the domestic market is still flooded with imported textile products, especially illegal imports.

Therefore, the government must be more assertive in taking action against parties suspected of being import mafia. "The import mafia is often assisted by customs officials in the field to enter goods illegally," concluded Redma.