Heaptalk, Jakarta — The textile and apparel industry is expanding and showing positive growth, bolstered by robust foreign and domestic demand. However, the Ministry of Industry responds to these industry players’ concerns regarding the relaxation of prohibition and restriction regulations (Lartas) on imported goods similar to domestically produced goods.
“As the industry supervisor, the Ministry accommodates input from industry players regarding the challenges they face in increasing productivity and competitiveness. The concern of textile and product textile (TPT) industry players arises as the regulations of this industry still need to be arranged optimally,” Director of the Textile, Leather, and Footwear Industry, Adie Rochamanto Pandiangan said.
Based on data from the Central Statistics Agency (BPS), the textile and apparel industry subsector grew by 2.64% year-on-year in the first quarter of 2024. Meanwhile, during the same period, foreign demand for textile and apparel products also increased in volume, with textiles growing by 7.34% year-on-year and apparel by 3.08% year-on-year.
In addition to export orders, the stability of domestic household consumption has also helped drive growth in the Textile and Apparel Industry, as well as the Leather, Leather Goods, and Footwear Industry, in line with the 2024 elections, national holidays, collective leave, and the Eid activities.
The Ministry of Industry is optimistic that the growth of the textile and apparel industry can be further optimized if the prevention of second-hand clothing consumption and market surveillance following applicable regulations on imported goods are enhanced.
However, TPT industry players are concerned about the influx of imported products. Previously, small and medium enterprises (SMEs) in the garment and footwear sectors enjoyed a 30-50% increase in domestic demand following the implementation of technical consideration (peek) regulations for imported goods, as stipulated in the Ministry of Trade Regulation No. 36 of 2023 on Import Policies and Regulations.
Nandi Herdiaman, Chairman of the Bandung Garment Entrepreneurs Association (IPKB), and Endang, representing SME Footwear Entrepreneurs in Bandung, echoed this concern. They worry that the market will soon be flooded again with imported apparel and footwear. “This is not just a concern but a bitter experience we have faced in recent years when imported apparel and footwear were uncontrolled,” Nandi added.
This situation could weaken many SMEs and close production. They hope the government will re-implement market protection from the influx of imports, whether through incentives or other regulations.
Another statement came from Redma Gita Wirawasta, Chairman of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI). Redma stated that import control would only be effective if everything relaxed.
“We initially welcomed the Ministry of Trade’s step to control imports through Trade Minister Regulation (Permendag) No. 36/2023. This regulation has been socialized since December 2023 and took effect on March 10, 2024. Therefore, the container backlog occurred due to rogue importers who did not want to process Import Approval permits,” he said.
He noted that, of the 26,000 containers reported to be held up, around 85% were finished goods belonging to trader importers, while only 15% were genuinely for manufacturing industry needs.
Redma added that for the industry to grow strong, there needs to be a vision of industrial integration, specifically downstream processing and upstream strengthening. However, Redma believes other ministries must support this industrial development and integration vision. This could lead to deindustrialization, with the industry becoming a casualty.
He pointed out that the absence of regulations, which serve as tools for import control, could affect the investment climate and the development of the domestic textile industry, as well as employment levels.
