Deputy Industry Minister Asserts Textile Sector Resilience Amid Rupiah Volatility
Jakarta (ANTARA) - The Deputy Minister of Industry, Faisol Riza, assesses that the weakening of the Rupiah exchange rate and capital market volatility have not had a significant impact on the textile and textile products (TPT) industry.
“Recently, there have been many issues suggesting that the rise in foreign currencies and the pressure on the Rupiah are having a massive impact on the industry. However, we know that certain sectors are actually experiencing a harvest of opportunities,” said Faisol Riza in a statement quoted in Jakarta on Thursday.
Faisol Riza conducted a visit to observe the production processes at PT Gajah Angkasa Perkasa in Bandung. The visit was part of an effort to inspect several industrial sectors, including textiles, amidst public concern regarding the impact of the weakening Rupiah and current capital market instability.
“It is evident that the textile industry has strong fundamentals and is almost unaffected by the instability of the Rupiah exchange rate or the capital market. I also observe that our national industry possesses strong resilience in facing unstable global situations,” he explained.
“We can compete with textile prices produced by other countries, even at market prices. This is a point of pride. Naturally, the government will continue to support the textile industry in Indonesia,” said Deputy Minister Riza.
Furthermore, Riza encouraged the textile industry to utilise geopolitical challenges to increase export market expansion. One such method is through Indonesia’s trade agreements with Europe, which provide a 0 per cent import duty for Indonesian textile products.
“The government is also ensuring that border controls are strictly enforced. The President has ordered that Customs serves as our economic strength by limiting illegal goods, sub-standard products, and goods that damage the domestic market,” said Deputy Minister Riza.
With a Domestic Component Level (TKDN) reaching 8t5 per cent, Dedy is optimistic that they can continue to add new export destinations, with targets including Saudi Arabia, Egypt, the United Arab Emirates (UAE), France, the United Kingdom, Spain, South Korea, Vietnam, Papua New Guinea, and Canada.
“We hope that in the future, we can export finished goods and specialties, such as military and government uniforms, to other countries,” said Dedy.
It is noted that, in addition to uniforms, PT Gajah Angkasa Perkasa’s business lines also produce various garment products, including shoes, epaulettes, batik fabrics, and footwear.