Menperin: National TPT Industry Capable of Competitiveness in Global Market

By : Ridwan And Aldi Firhand. A | Sunday, December 10 2017 - 12:46 IWST

Menperin Airlangga Hartarto (Foto Humas)
Menperin Airlangga Hartarto (Foto Humas)

INDUSTRY.co.id - Jakarta - Minister of Industry (Menperin), Airlangga Hartarto revealed, national textile industry is able to compete globally. Because, this mainstay sector has been integrated from upstream to downstream and its products are known to have good quality in the international market.

"Especially for the sports shoes and apparel industry, we have already passed China, in fact, in Brazil, we have mastered the market there to 80 percent," Airlangga said in Jakarta (10/12/2017).

The minister added that the government is working to create a comprehensive economic cooperation agreement with the United States and the European Union to expand the local textile export market.

"Currently in the process of negotiation for the bilateral agreement, because the import duty of Indonesian textile products is still subject to 5-20 percent, while Vietnam's exports to America and Europe are zero percent," he said.

Kemenperin also has encouraged the national textile industry to immediately take advantage of digital technologies such as 3D printing, automation, and internet of things to be ready to face the era of Industry 4.0. This transformation effort is believed to increase efficiency and productivity, in addition to continuing the restructuring program of machinery and equipment.

Furthermore, the Ministry of Industry continues to coordinate with the authorities to overcome the illegal import of textile products in the form of bulk. "We will also notice and there is a firm action to import used clothes that enter through the port of rats," added Airlangga.

In the first half of 2017, the national textile industry experienced an increase in demand by 30 percent, especially the domestic market, thus contributing to increased production utilization to reach 5-10 percent. The growth rate of the export-oriented labor-intensive sector also climbed by 1.92 percent (YoY) over the same period a year earlier.

Meanwhile, the Director General of Chemical, Textile and Multifarious Industries (IKTA) of Ministry of Industry Achmad Sigit Dwiwahjono said that this positive performance was assessed by national textile industry actors, one of them being the role of the Task Force on Importation of Risk High Imported Goods established by the government.

"Currently, TPT industry can meet domestic demand up to 60 percent," he said.

Sigit added that other leverage factor is through the implementation of fiscal and non-fiscal policies of several packages of economic policies that have been issued by the government. This is a step to create a conducive investment climate.

"For example, facilitating the provision of fiscal incentives in the form of tax allowance for industries that develop vocations and innovation," he said.

In order to support the improvement of national TPT industry performance, the government also cut down regulations, licensing, and bureaucracy to facilitate industry players in trying in Indonesia. In addition, guarding the wage system to ensure certainty for labor and business actors and developing a bonded logistics center (PLB).

According to Chairman of the Indonesian Textile Association (API) Ade Sudrajat, domestic textile sales will jump 32.85 percent this year to USD9.3 billion, compared to last year amounted to USD 7 billion.

The high sales growth was driven by the Implementation of High Risk Import Control Task Force that could stem the rate of imported textiles to the domestic market.

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