Gov’t Reviews API Inputs to Counter Imported Textile Products

Minister of Industry Airlangga Hartarto and a number of Government high-ranking officials receives representatives of API and APSyFI, at the Merdeka Palace, Jakarta, Monday (16/9). (Photo by: Agung/PR)

The Government is studying several inputs from the Indonesian Textile Association (API) and the Indonesian Association of Synthetic Fiber and Filament Producers (APSyFI) to respond to the condition of domestic market that is flooded with imported textile products, including fabric, yarn, and printing fabric.

Minister of Industry Airlangga Hartarto asserted that tariff harmonization, exemption of Value Added Tax (VAT) of imported cotton, and relocation of textile industry to special industrial zones are among in the inputs to be reviewed by the Government.

“The Government is reviewing tariff harmonization of import duty both for downstream and upstream industries in order to curb imports,” the Minister said after accompanying President Joko “Jokowi” Widodo when receiving representatives of API and APSyFI, at the Merdeka Palace, Jakarta, Monday (16/9).

According to the Minister, Indonesia’s export value on textile industry increases, but the increase cannot counterbalance the value of imported textile products which flood the country. Therefore, the Government must implement harmonization of import duty policy.

On that occasion, the representatives of two associations also asked the Government to exempt cotton import’s VAT because cotton as a raw material has no value added.

As for the relocation of textile industry to special industrial zones, the Minister said that the prospective location is in Central Java. He added that the Government will also facilitate enterprises which intend to relocate the factories. (DND/AGG/ES)

Translated by : Rany Anjany Subachrum
Edited by : Mia Medyana Bonaedy