Indonesian Political, Business & Finance News

Prabowo Issues New Directives, Highlighting Halal Certification and Illegal Balpres

| Source: CNBC Translated from Indonesian | Economy
Prabowo Issues New Directives, Highlighting Halal Certification and Illegal Balpres
Image: CNBC

President Prabowo Subianto held a limited meeting regarding the textile and textile products (TPT) industry at the State Palace on Tuesday (22/09/2026). He requested that various obstacles within the textile industry be removed.

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, expressed his desire for these barriers to be resolved. “There were several notes regarding obstacles. First, regarding the ease of raw material entry. The President requested that we review Technical Approvals (Pertek) and other related matters,” he said.

“Secondly, specifically for the downstream sector, namely garments, where disruptions occur through bulk imports or illegal ‘balpres’ (wrapped in plastic) imports. The Director General of Customs and Excise has been instructed to immediately regularise this, as it significantly disrupts domestic garment producers,” he added.

According to Airlangga, the President also requested his staff to facilitate the textile industry in obtaining raw materials, including leather-based materials, particularly concerning halal certification issues. “Ease of certification regarding halal issues is required. This is essential not only for the textile industry but also for the footwear industry,” he noted.

Furthermore, he mentioned that textile products are facing issues regarding tariff harmonisation and import duty rates for several types. Consequently, he was tasked with resolving matters related to Anti-Dumping Duties.

During the meeting, Airlangga reported on the condition of the textile and textile products industry from upstream to downstream, noting its contribution to GDP at 0.97%. Additionally, the sector employs 4 million people, with export values reaching US$12 billion.

Airlangga also informed the President that the TPT industry grew by 5.6%, exceeding the overall economic growth rate, while the leather goods and footwear industry grew by 8.25%.

He noted that the production capacity utilisation of textile factories currently stands at approximately 75%, indicating room for expansion. Regarding the trade balance for garment products, Indonesia has exported US$8.7 billion against imports of US$690 million, meaning Indonesia has become a net exporter in this segment.

In contrast, for upstream textile products, Indonesia remains a net importer, with imports valued at US$8.4 billion compared to exports of only US$3.1 billion. “So there are two sides: from the upstream to midstream industry, we are net importers, but in terms of garments, we are net exporters,” he concluded.

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