NEWS

Alleged Use Of PMI Identity For Imported Goods: Textile Business Perspective

The alleged case of using the identity of Indonesian Migrant Workers (PMI) for imported goods has raised concerns among textile business people. This came into the spotlight after the Head of the Indonesian Migrant Worker Protection Agency (BP2MI), Benny Rhamdani, revealed his plan to request the release of PMI goods stuck at the port.

According to Benny Rhamdani, this action must be carried out with harmonious coordination between various relevant ministries and institutions, referring to the Minister of Trade Regulation (Permendag) Number 36 of 2023 concerning Import Policies and Regulations which has undergone revision with the Minister of Trade Number 3 of 2024.

However, a strong response to the implementation of the Minister of Trade Regulation came from the General Head of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), Redma Gita Wirawasta. Redma voiced the suspicion that the imported goods were actually smuggled by borrowing PMI's identity.

In this context, textile business people emphasize that the regulation aims to restore the function of labor-intensive industries after the Covid-19 pandemic and global geopolitical turmoil, not to blame migrant workers for the decline in industrial performance.

Redma emphasized that the textile sector respects PMI's role as a foreign exchange contributor to the country. However, he highlighted the difference between PMIs who bring goods as souvenirs and those who use this identity for commercial purposes.

In Redma's view, the government's policy to prioritize the domestic market as a solution to maintain the domestic manufacturing industry is the right step, especially in facing current global challenges. However, he also admitted that this policy could harm importers, especially those who operate illegally.

In line with APSyFI, Chairman of the Working Convection Entrepreneurs Association (IPKB), Nandi Herdiaman, believes that regulations such as Minister of Trade Regulation 36 of 2023 have provided positive encouragement for small and medium industries, including the convection industry. It is hoped that this regulation will stop the trend of layoffs in the textile sector and encourage consumption of domestic products.

The importance of the domestic market was also voiced by many parties, including President Jokowi and ministers in coordination with the Coordinating Ministry for the Economy. They underlined the need to protect the domestic market from flooding with imported goods in order to maintain economic stability and resilience of domestic industry.

With proper implementation, it is hoped that this regulation can maintain a balance between protecting the domestic market and industrial interests, while still respecting PMI's important role in the national economy.