Import Limitation Boosts Textile Market

VIVAnews - The import policy for certain products through five ports and two airports as stated in the Trade Ministry Regulation No. 56/2008 is starting to make an impact.

"There's a rise on the domestic market for five products," said the chairperson of the Indonesian Textile Association (API), Benny Soetrisno, in Jakarta on Monday, Feb. 23.

Moreover, Soetrisno said that there has been a 15 percent increase especially in textile and textile products. "It's still lower compared to electronic products which increased by 20 percent, according to Gobel [Rachmat Gobel, the chairperson of the Electronic Entrepreneur Alliance]," he said.

Soetrisno admitted that the government's policy is a success. "There's an increase in the domestic textile and textile products consumption," he said. Before the policy was issued textile and textile products only reached US$3 billion compared to the current US$5 billion total consumption.

Yet, Soetrisno also admitted that there is a new mode for textile and textile product smuggling by using the producer's importer facility. "For example, there are several members of the API (Indonesian Textile Association) that have financial difficulties abetting with the illegal importers to smuggle raw materials," he said.

The producer importer is allowed to import textile and textile products' raw materials only for the industry's needs.

Therefore, Soetrisno said that API suggested to join the selection of producer importer before the import permit is issued. "I have already met Bu Diah (Diah Maulidia, the Director General of Foreign Trade of Trade Department) inquiring a list of producer importer list so we can verify it with our data," he added.

The data verification will involve API regional representatives that have more knowledge on each textile factory in their regions. "We still have no decision, but I think the response will be positive," Soetrisno said.

--

Translated by: Ariyantri E. Tarman