Illegal imports harming Indonesian textile firms
Indonesian textile producers currently produce 67% of the country’s total textile consumption. However, there are fears that rising levels of illegal textile imports could reduce their share to below 50%. Representatives from the sector are calling for help from the government’s trade and industry ministries.
Ernovian Ismy, executive secretary of the Indonesian Textile Association (API), told the Jakarta Post: “Clearer and more transparent action needs to be taken by the two [ministries] to stem this wave of illegal textile imports. They also need to involve us in the process of preventing illegal imports by working with us in conducting field surveys of importers to see whether they comply with the government’s requirements [to be registered as authorised importers].”
Authorised textile importers must also be textile producers, and the volume of imports permitted is proportional to production capacity.
The country’s domestic textile market is expected to achieve turnover of around Rp 70 trillion ($7.4 billion) this year.
Experts have suggested that Indonesian textile exporters should look for new markets for their goods overseas, including India and the Middle East. Its main export markets are currently the US, Europe and Japan.
