The Indonesian Government has initiated an investigation into textile import products as an initial step to safeguard the domestic industry against foreign shipments. Following a formal request by the Indonesian Textile Association (API) in September of this year, the Indonesian Trade Safeguard Committee (KPPI), which operates under the Ministry of Trade, is in charge of the investigation.
One of the signs that the Ministry of Trade takes into account when starting the investigation is the decline in the number of workers in the domestic textile industry, as well as the declining market share of domestic producers.
Acting KPPI Chairman Nugraheni Prasetya Hastuti stated in a press release on 31st October that the committee has observed early indications of significant losses or risks of significant losses as a result of the spike in textile imports. Cotton woven fabric, cotton sewing thread, cotton yarn, cotton yarn, and fabric woven from man-made filament yarn are among the goods that are being investigated.
According to the government, imports of these goods increased from 14,843 tonnes in 2019 to 29,908 tonnes over the previous four years. The World Trade Organisation (WHO) has allowed precautionary measures, such as this probe, which are normally carried out by its member nations. In the midst of the worldwide economic slump, companies in Indonesia’s textile and apparel sector are reporting sharp declines in export revenue, making it impossible for them to continue operating.
