API Expects Government to Remove Policy to Support Industrial Raw Material Fulfillment

INDUSTRY.co.id - Jakarta- The government's plan to issue a policy The prohibition and restrictions (Lartas) on imports of industrial raw materials are unsettled by industry players.

The reason, a number of raw materials commodities have not been able to fully meet the needs of national industries.

Chairman of the Indonesian Textile Association (API), Ade Sudrajat, said that domestic industry is demanded to be more efficient and have high competitiveness.

"Not all local raw materials can meet the needs of the textile industry • Imported raw materials are still needed, but there must be a more favorable regulation of domestic raw material producers," Ade said in Jakarta (7/9/2017).

According to him, the import of raw materials is allowed as long as the purpose of the product is preferred for the export market. "We hope the government can issue policies that support industrial growth, including the fulfillment of raw materials," he explained.

On the other hand, Secretary of the Directorate General of Agro Industry at the Ministry of Industry, Enny Ratnaningtyas, said that a number of domestic industrial sectors are currently in need of even dependent on imported raw materials.

"One example of milk processing industry that needs milk raw material is 3.8 million tons per year, of which 2.95 million tons or 79 percent are met from imports," he said.

According to him, without adequate raw material support, this will have an impact on the decline of industrial competitiveness.

Meanwhile, the Directorate of Foreign Trade of the Ministry of Trade, Nurika Anggraini said that the Ministry of Trade is still discussing Lartas' plan for some raw materials.

According to her it is done to reduce dependence on imports. "We are not positioning imports as haram, but balancing them," she concluded.