The Indonesian Textile Association (API) has expressed approval of the government's decision regarding the implementation of Minister of Trade Regulation (Permendag) 36 of 2023, which underwent slight modifications in Permendag 3 of 2024. Jemmy Kartiwa, the Chairman of API, emphasized the significance of Permendag for the domestic textile industry, foreseeing positive impacts. He highlighted that the shift from post-border to border inspections could enhance oversight of textile and textile product (TPT) imports, protecting the domestic market from inundation. With border mechanisms in place, protection for Small and Medium Enterprises (SMEs) and medium to large industries could be better ensured. Jemmy anticipates significant positive impacts from the implementation of Permendag 36 of 2023, projecting increased domestic utilization for textile products and enhancing the competitiveness of domestic industries in the global market. API extends gratitude to the government, particularly the Ministry of Trade (Kemendag) and the Ministry of Industry (Kemenperin), for their full support in enacting this regulation, hoping it will boost TPT industry utilization and aid in the recovery of the domestic textile industry.
Anne Patricia, Chairperson of the Trade Division of the Indonesian Employers Association (APINDO), added that appropriate regulations should stem from bottom-up processes, reflecting industry stakeholders' aspirations to the government. She emphasized the importance of controlling textile and garment imports to prevent potential harm to domestic industries. Similarly, Redma Gita Wirawasta, Chairman of the Association of Indonesian Fiber and Filament Yarn Producers (APSyFI), welcomed and appreciated the government's supportive measures for the domestic textile industry, committing to continued collaboration in advancing the sector. Redma highlighted the significant challenges faced by the TPT industry from 2021 to 2023, attributing a decline in factory utilization to up to 40% of production capacity, leading to substantial impacts on employment. He pointed out uncontrolled imports as a major contributor to the downfall of the Indonesian TPT industry during that period, citing predatory pricing of imported goods. Permendag 36 of 2023, which shifts import regulation for TPT products from post-border to border, is expected to provide better regulation and control over TPT imports, potentially revitalizing the industry.
