The Indonesian Fiber and Filament Yarn Producers Association (APSyFI) has highlighted weak law enforcement regarding alleged dumping practices and illegal imports, which are increasingly pressuring the national textile and textile product (TPT) industry. This situation is said to have contributed to the closure of over 100 companies and the layoff of hundreds of thousands of workers over the past four years.
APSyFI Secretary-General Farhan Aqil Syaudi believes that the challenges facing the domestic textile industry stem not only from issues of competitiveness and production efficiency but also from unfair business practices. The influx of unreasonably priced imports in the upstream sector and illegal finished garments in the downstream sector is further exacerbating the pressure on domestic producers.
"Tolerance toward dumping practices and illegal imports has severely damaged the integrated strength of the national textile and textile product (TPT) industry ecosystem," Farhan said in a written statement on Tuesday (October 13, 2026).
According to Farhan, the government needs to evaluate import policies that facilitate the entry of raw materials—specifically yarn and fabric—at a time when the suspected large-scale illegal importation of finished garments remains a problem. If left unaddressed, this situation threatens the viability of the textile industry across the entire supply chain, from upstream to downstream.
Trade Map data compiled by APSyFI shows that the import ratio for Indonesia's textile and textile product sector rose from 55% to 83% over the last decade. This stands in stark contrast to Vietnam, which saw its import ratio drop from 70% to 28% during the same period.
The pressure on the industry is also evident in the declining contribution of the TPT sector to the national Gross Domestic Product (GDP). Over the past decade, the sector's contribution has shrunk from 3.5% to 0.97%. In contrast, the textile industry's contribution to Vietnam's GDP stands at 6%.
Farhan believes that policies overly favoring imports could hinder the recovery of the national textile industry and dampen investment interest. He argues that strengthening the domestic industry requires stricter import oversight and consistent law enforcement regarding alleged violations.
"As long as the pro-import regime remains entrenched, our textile and garment sector will never recover, as this is a critical issue stifling investment," he stated.
Import pressure is also being felt by garment businesses, including small and medium-sized enterprises (SMEs). Nandi Herdiaman, Chairman of the *Ikatan Pengusaha Konveksi Berkarya* (Association of Garment Entrepreneurs), noted that imported products entering through official channels are disrupting sales of domestically produced garments.
Nandi warned of a potential rise in garment imports following the implementation of Trade Minister Regulation No. 17 of 2025. This regulation governs requirements for Import Approvals from the Ministry of Trade and technical considerations regarding import quotas from the Ministry of Industry.
He also highlighted the 84.19% increase in yarn imports and the 20.28% rise in fabric imports between 2017 and 2025. This surge illustrates the immense import pressure facing the domestic textile industry.
Industry players are urging the government not to rely solely on changes to import policies and the provision of incentives to improve the textile and garment sector's condition. They believe that field supervision and enforcement actions against alleged violations must be integral parts of efforts to protect the national industry.
Nandi hopes the new Minister of Industry will address these issues, particularly the alleged ongoing large-scale illegal entry of garments.
"We urge the new Minister of Industry to pay attention to this matter," said Nandi. He added that the illegal bulk importation of ready-made garments continues, with industry players seeing no tangible action taken to address the issue.
Business players hope the government will strengthen oversight of imported goods, take transparent action against alleged violations, and ensure fair trade policies. These measures are considered crucial for safeguarding the sustainability of the national textile industry, preserving jobs, and driving an investment recovery amidst rising competition from imported products.