tighten restrictions on textile imports
The restriction is aimed at
protecting domestic producers of products such as certain
types of yarns, fabrics and other goods. The reasoning is
that products that can be produced domestically should no
longer be imported. Textile importers have to gain approval
before they can ship in textile goods.
With economic growth, and a
shift in demand from basic clothing to functional clothing,
such as sportswear, the national textile industry is
building production capabilities and increasing economies of
scale in order to meet the demand in domestic and export
The country’s textile industry
has weakened in the past three years due to an influx of
imported textiles combined with sluggish consumption by
Indonesian consumers. Imports of textile fabrics rose by 74
per cent between 2016 and 2018. Imports of textile products,
such as some types of synthetic yarns, doubled in the three
years to 2018. Indonesia imports products from China, South
Korea, Thailand and Vietnam, among others.
Companies are facing a cash
shortage resulting from tough competition with imported
products. Another problem Indonesia faces is smuggled used
clothing. The country does not allow imports of secondhand
garments. The industry hopes textile and garment rules are
relaxed to help local businesses boost their exports.
Companies that have been so far oriented to local markets
are being encouraged to become more export oriented.