The Executive Director of the Indonesian Textile Association (API) Danang Girindrawardana emphasized that the import relaxation rules set by the government, in this case the Ministry of Trade, were one of the factors in the decline in the Indonesian Manufacturing Purchasing Manager’s Index (PMI). In July 2024, the national manufacturing index fell to 49.3, from 50.7 in June 2024.
“If finished goods from abroad can enter easily and in extraordinary large quantities, this will certainly have an impact on reducing the domestic manufacturing process. The supply chain will react quickly,” said Danang when contacted, Monday (12/8).
Danang revealed that the impact of relaxation has caused the domestic industry to automatically reduce textile production capacity. This is accompanied by retailers who will lower selling prices.
“This is done to get the stock out, but the factory’s profits will decrease. The demand for raw materials and auxiliary materials will also decrease,” he added.
Therefore, Danang at least asked for two things that the government must do immediately. First, expedite the policy of import duty security measures (BMTP) with various types.
“Second, be serious about enforcing the law and taking action against perpetrators of illegal imports,” he stressed.
Those two things, according to him, are very easy to do. The condition is that the government has a strong political will.
“The problem is, the government’s political will is still questionable. Whether it really wants to protect domestic industry or not,” he concluded.
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