Video: Textile Industry Under Growing Pressure from Rising Gas Prices and Chinese Imports

Jakarta, CNBC Indonesia – The textile and textile products (TPT) industry, still recovering from the pandemic’s impact, is facing renewed business pressures due to the Middle East conflict, soaring energy prices, fuel and gas costs, Rupiah depreciation, and rising interest rates.

APSyFI Chairman Redma Gita Wirawasta said rising gas prices are adding to the industry’s burden. Although they receive the Specific Natural Gas Price (HGBT) at $7 per MMBTU, the quota is limited to 65% of their needs, with the remainder charged at market rates that continue to rise.

This pressure not only increases production costs but also undermines the competitiveness of Indonesian textile products, making it increasingly difficult to compete with cheaper Chinese imports.