Jakarta, Indonesia Sentinel — The domestic textile and textile products (TPT) industry in Indonesia has experienced a significant decline in growth, with illegal imports from China being a major contributing factor. Over the past five years, the country has been inundated with more than 72,000 containers of illegally imported textiles and textile products.
Redma Gita Wirawasta, Chairman of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI), warned that these illegal imports have flooded local markets, triggering deindustrialization over the past decade.
Redma revealed the data citing from the International Trade Centre (ITC) and TradeMap. “Illegal imports of textile and textile products have reached approximately 72,250 containers in the last five years, causing state revenue losses of around Rp46 trillion,” Redma states in an official statement on Thursday November 28, as reported by CNBC Indonesia.
Redma highlighted the alarming gap from 2019 to 2023 between China’s reported exports to Indonesia and Indonesia’s recorded imports from China for textile and textile products (TPT) under HS codes 50-63. This gap could indicates that the large volume of goods entering the country illegally.
According to data shared by Redma, China’s textile and textile product (TPT) exports to Indonesia between 2019 and 2023 were recorded at $5.09 billion (Rp80 trillion), $3.79 billion (Rp60 trillion), $5.86 billion (Rp92 trillion), $6.50 billion (Rp102 trillion), and $5.28 billion (Rp83 trillion), respectively.
During the same period, Indonesia’s recorded TPT imports from China showed significant discrepancies, with annual gaps of $1.12 billion (Rp18 trillion) in 2019, $706.1 million (Rp11 trillion) in 2020, $1.79 billion (Rp28 trillion) in 2021, $2.12 billion (Rp33 trillion) in 2022, and $1.47 billion (Rp23 trillion) in 2023.
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The impact of these illegal imports has been devastating for Indonesia’s textile sector. Major industry players such as Sritex, once a leading textile manufacturer, have declared bankruptcy. Meanwhile around 30 others smaller textile companies have shuttered operations, leaving hundreds of thousands of workers unemployed.
“These closures are a testament to the brutal practices of illegal importation, particularly over the past two years,” Redma stated.
Government Action
Redma expressed optimism in President Prabowo Subianto’s commitment to combating illegal imports as part of his administration’s pledge to eliminate shadow economy activities and protect the nation’s textile industry.
“APSyFI appreciates the initiative taken by the Coordinating Minister for Political, Legal, and Security Affairs to address this issue seriously,” Redma said. “Eradicating illegal imports requires extraordinary measures, considering the involvement of various parties, including rogue law enforcement officers.”
The Indonesian government has ramped up efforts to crack down on illegal importation practices, with the textile industry hopeful that these measures will lead to a cleaner bureaucracy and a revival of the struggling sector.
(Raidi/Agung)
