Minister issues decree to limit textile imports<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Industry and Trade has issued a decree to
\nlimit textile imports in a bid to help the local industry, which
\nhas been severely hurt by massive quantities of cheap imports.<\/p>\n
Decree No. 732\/2002, which was signed by minister Rini MS
\nSoewandi on Tuesday, stipulates that the importation of textile
\nproducts can only be done by local textile producers.<\/p>\n
Textile imports can only be used as raw material or
\nsupplements for the production process of the importers-producers
\nand may not be sold or transferred to others, the decree states.<\/p>\n
The decree says that the new regulation was necessary "to
\nprevent the sale of illegally imported textiles, which has
\ncreated unfair trading and inflicted losses on local textile
\nproducers."<\/p>\n
The decree came following repeated complaints by local
\nproducers over the massive quantity of cheap imported textiles,
\nmostly from China, available on the local market.<\/p>\n
They said that uncontrolled textile imports had added to the
\nmisery of local textile producers, which have been struggling to
\ncope with rising manufacturing costs.<\/p>\n
The decree also states that all authorized importers must seek
\napproval from the ministry for the amount and the time schedule
\nof their imports.<\/p>\n
Importers must also report to the ministry about the
\nrealization of their monthly imports.<\/p>\n
The government will revoke their import licenses if authorized
\nimporters fail to submit monthly reports, according to the
\ndecree.<\/p>\n
The Indonesian Textile Association (API) chairman, Lili
\nAsdjudiredja, welcomed the decree, saying it could help curb the
\nsmuggling of textile products and protect local producers against
\nsmuggled imported products.<\/p>\n
"This is very good news for us. Our local products have been
\nseriously threatened by smuggling activities. With the new decree
\nwe can now control the inflow of textiles into the local market,"
\nLili said.<\/p>\n
Indonesia booked a record textile export value of US$8.2
\nbillion in 2000, but the export value slipped to $7.6 billion
\nlast year.<\/p>\n
There are also fears that many foreign buyers will be
\nreluctant to buy Indonesian textiles, and shift orders to other
\ncountries, if they are dissatisfied with the probe by Indonesia
\ninto the bomb attack in Bali more than two weeks ago.<\/p>\n
In light of the fears, several days after the Bali bombing,
\nRini made an official request for the Ministry of Finance to
\nraise import duties on garments to up to 40 percent to limit
\nimports so that local producers had a better opportunity to sell
\ntheir products on the local market.<\/p>\n
Import duties on garments currently range from between 15
\npercent to 25 percent,<\/p>\n
Rini has also asked the police to intensify operations to
\ncrack down on the rampant smuggling of garments into the country.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/minister-issues-decree-to-limit-textile-imports-1447893297",
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"sponsor": "Okusi Associates",
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