June 22, 2024

Indonesian Textile & Clothing Sector On Path To Recovery

The Indonesian Fiber and Filament Yarn Producers Association (APSyFI) assessed that the textile and apparel industry is on the path of a recovery trend, although it is not yet significant.

APSyFI Chairman Redma Gita Wirawasta said that this has happened after the publication of a regulation which took effect from March 10 and which regulates illegal imports of textiles and garments.

“There appears to be an increase in sales activity, particularly in fabrics and clothing retail or it is an impact of Ramdan purchases, when textiles and apparel buying activity rises,” Wirawasta added.

“Unfortunately, APSyFI also received reports that there has been no significant increase in sales of products in the textiles upstream and intermediate sectors,” the APSyFI Chairman stated.

“As a result, it can be safely considered that Ramadan will not have a massive impact on the annual performance of the textile industry,” he observed.

The newly introduced regulation is to prevent import of illegal textiles and garments through the consignment service and delivery service mode.

“However, this regulation still has loopholes because illegal imports are continuing through wholesale imports mode,” Wirawasta observed.

Indonesian textile and clothing manufacturers are hopeful that the domestic market will regain its earlier momentum due to the new regulation,

Wirawasta further said that in January and February there were still few cases of layoffs in the domestic textile and garment industry.

However, entering March, it seems that the trend of employee layoffs has started to slow down due to the impact of the new regulation.

“The new regulation has the potential to increase production activities which will ultimately result in laid-off workers returning to their workplaces,” he concluded by saying.

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