Chinese textiles flood local market<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After eight years in the garment industry, Supena is savvy enough
\nto know that one must keep abreast of the latest trends to stay
\nin business. That includes the use of imported textiles,
\nregardless of the legality of the practice.<\/p>\n
\"We are now using fabrics from China,\" said Supena, whose
\nfactory in the West Java town of Tasikmalaya employs 200 people.
\n\"Otherwise, we would have to close shop.\"<\/p>\n
Although he suspected the polyester he purchased from a broker
\nwas smuggled into the country, the savings was too great for him
\nto ignore: Rp 2,300 (24 US cents) per meter for the Chinese
\npolyester compared to Rp 7,000 per meter for Indonesian-made
\npolyester.<\/p>\n
As more local garment businesspeople switch to imported
\nproducts, mainly from China and South Korea, local textile
\nmanufacturers are growing concerned.<\/p>\n
\"About 60 percent to 70 percent of textile products in the
\ndomestic markets are imported, legally or illegally,\" said
\nHerris, the head of the wholesale division at the Jakarta branch
\nof the Indonesian Textile Association (API). \"If this continues,
\na lot of factories will have to close down.\"<\/p>\n
He said the association arrived at its figure of imported
\ntextile products after conducting surveys at textile markets
\nthroughout the country -- Tanah Abang and Cipulir in Jakarta;
\nBukit Tinggi in West Sumatra; Medan in North Sumatra; and Bandung
\nin West Java.<\/p>\n
According to Herris, a significant number of the imported
\ntextiles were illegally smuggled into the country through various
\nports.<\/p>\n
\"Buyers used to come to Tanah Abang to buy textiles and
\ngarments,\" said Herris, referring to the largest textile market
\nin Southeast Asia, which has a daily turnover of Rp 150 billion.<\/p>\n
\"Now it is the other way around. Tanah Abang vendors are going
\nto places like Bukit Tinggi because that is where the cheap
\nimported goods are.<\/p>\n
\"Customs and excise officials are not doing their jobs or are
\npretending that nothing is happening,\" he said.<\/p>\n
Imported textile products are assessed a customs tax of up to
\n15 percent and a mandatory value added tax of 10 percent.<\/p>\n
API chairman Benny Soetrisno said the flood of imports was
\nworrying.<\/p>\n
\"The domestic textile market has been disrupted by the
\nsmuggled products,\" he said, adding that the government would
\nlose potential tax revenue if it continued to ignore the problem.<\/p>\n
Economist Aviliani from Jakarta-based Paramadina University
\nsaid the increase in smuggled textiles was cause for concern.<\/p>\n
\"People who used to be manufacturers are now turning into
\ntraders,\" she said, adding that if this trend continued the
\nestimated 1.2 million textile workers in the country would begin
\nto lose their jobs.<\/p>\n
However, she said the more fundamental issue was the textile
\nindustry's lack of competitiveness and productivity compared to
\nChina.<\/p>\n
\"The cost of the bureaucracy here is high,\" she said. \"Also,
\nthe minimum wage makes the industry inefficient.<\/p>\n
Aviliani's opinion is shared by the API's head of human
\nresources, Indra Ibrahim.<\/p>\n
\"It is pointless to be jealous of China's ability to produce
\ncheaper products. It is more important that we improve our own
\ncompetitiveness,\" he said, adding that Chinese textile workers
\nwere about 50 percent more productive than Indonesians.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/chinese-textiles-flood-local-market-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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