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Textile Bulletin Holds 2nd TPT Industry National Seminar

BULETIN TEKSTIL.COM/ Jakarta – Being a prestigious event at the beginning of the year for national fashion trends, the TPT (Textile and Textile Products) industry exhibition in Indonesia, Inatex together with Indo Intertex 2023 will be held again at the Jakarta International Expo. Held by Peraga Expo in collaboration with the Indonesian Textile Association (API) and several other associations, this exhibition displays the latest technological products and innovations from textile and garment machinery, raw materials, digital printing machines, textile chemistry, accessories and other textile products.

The 19th edition of the exhibition which has been running for 3 days (29 – 31 March 2023) presents more than 500 participants from 11 Asian and European countries. “The textile industry is slowly rising and returning to become one of the manufacturing industries that contributes greatly to the national economy. Peraga Expo is optimistic that the holding of Inatex – Indo Intertex 2023 can boost the development of the National TPT Industry,” said Paul Kingsen, Project Director of Peraga Expo.

This year, the 19th  Peraga Expo expects 12,000 guests, businesspeople, and professionals. Visitors who pre-register will receive free admission. This exhibition will showcase online platform technologies that will connect exhibitors and attendees via the Texmatch application, allowing them to interact directly before and after the event and opening up new prospects.

In addition to the exhibition, there will be a series of informative and educational sessions on the latest trends and technologies in the textile and garment industry. One of them was packed in the Fashion Preneur Workshop and other seminars about the development of the national textile sector, which were attended by government experts, associations, and industry players.

One of the seminars was organized by buletintekstil.com media

Textile Bulletin seminar atmosphere

This seminar is the second time the textile bulletin has held a seminar at the annual Inatex textile exhibition, where in its 18th year 2022, the bulletin will also hold a seminar with the theme “Post-Pandemic Textile Industry Recovery“.

First seminar SEE Seminar TPT Ke 1

The textile bulletin carries seminar with the theme of “Textile Industry Strategy in Facing a Prolonged Crisis

This seminar was divided into 2 sessions, where the first session was filled with presenters from the Ministry of Industry (Adi Susanto), Political Economy and Banking Observers (Iramadji Idja) guided by moderator Indra Ibrahim. while for the opening remarks by Irwandi F Rajabasa as the supervisor of the Textile Bulletin.

In his remarks, Irwandy stated that the current state of the TPT industry is extremely tough in comparison to last year’s conditions, with several industries barely operating at 50% capacity. While half of the installed capacity needs be produced in order to pay workers’ wages, other operational expenses, and THR, this must be considered. This is the source of concern in the industry.

Irwandy M.A Rajabasa

Irwandy also emphasized used goods, particularly apparel, stating that if the import of used clothing was not immediately stopped, the impact would be on the domestic industry because it could not be absorbed by the market, causing companies to reduce and stop production, and layoffs were unavoidable.

This market share will be the savior of the TPT industry itself,” said Irwandy.

The next speaker was Andi Susanto from the Ministry of Industry who presented the Development Program for the Textile Industry and Textile Products in Indonesia.

A. PERFORMANCE OF THE TEXTILE AND APPAREL INDUSTRY

  1. The TPT industry grew positively in 2022 by 9,34% YoY despite experiencing a slowdown based on QtoQ from 3,33% in Q1 2022 to 1,64% in Q2 2022, -0,92% in Q3 2022 and -0,43 in Q3 2022. TPT’s contribution to GDP has decreased from 1,06% in 2021 to 1,03% in 2022.
  2. Exports cumulatively increased by 6,56% in 2022 compared to 2021, however, when viewed on a monthly basis throughout 2022, there was a decline in exports in July, August, September and October by -2,00%, -0,34 %, -20,14%, and -10,03%.
  3. Imports cumulatively increased by 8,6% in 2022 compared to 2021, however, when viewed on a monthly basis throughout 2022 it shows a decrease from July: 1,29%, continuing to Dec: -3,54%.

B. INVESTMENT DEVELOPMENT IN THE TEXTILE AND APPAREL INDUSTRY

  1. Investment in the textile industry in 2022 still grew positively with an investment value of IDR 8.22 trillion, an increase of 130% compared to 2021.
  2. Investment in the Apparel Industry is also still grew positively with an investment value of IDR 6.84 trillion, an increase of 131% compared to 2021.

C. LABOR IN THE PROCESSING INDUSTRY SECTOR BY SUBSECTOR

Labor data for the textile sector (KBLI 13) and the apparel sector (KBLI 14) show progress that is still quite good until August 2022 with an increase of 7,24% in the apparel industry and the textile industry experienced a slight decrease of 1,97%, however in total the textile and apparel industry showed an increase of 4,39%.

Fabric Import Composition:

Total Imports = 719.995.116

Total PI/LS = 719.030.153 which means 99,97%

Andi also highlighted the current problem of importing used clothes or thrifting, according to the data he submitted, that there were differences in the data recorded on the trademap site.

In 2021, the import volume was recorded at 27.758 tons (based on exporting country data), while BPS data was only 8 tons.

Based on the difference between the mirror data and the direct data, it is possible that illegal imports of used clothing and used textile goods occurred illegally.

Andi also revealed that the follow-up actions for the Thrifting problem included 7 points being conveyed.

  1. The Directorate of Textile, Leather and Footwear Industries conducted a field investigation on March 14, 2023, specifically at Pasar Senen and at Pasar Cimol Gedebage, Bandung City on Thursday, March 16, 2023 involving the Industrial Service Standardization and Policy Board of DKI Jakarta. According to the findings of the field survey, used clothing, used footwear, other used textile goods, and even used undergarments are very easy to find and trade freely in the area.
  2. Business actors, represented by APRISINDO and API, have submitted letters numbered 016/APR-UM/III/2023 and 025/API-IPKB/III/2023, stating that, despite the fact that the distribution of used clothing, footwear, and other textile goods of imported origin has been prohibited by Minister of Trade Regulation 18/2021 in conjunction with Minister of Trade Regulation 40/2022, there are still a lot of them circulating in a large amount which disrupts the domestic industry.
  3. Meetings have been held with the Ministry of Trade, the Directorate General of Customs and Excise, the TNI and POLRI. It was agreed that action would be taken against those importing used clothing, footwear and textile goods.
  4. At the meeting, it was reported that the Law Enforcement Officials (APH) who have an enforcement function (Customs and Excise, TNI AL, Water Police, and Bareskrim POLRI) stated that they were prepared to collaborate in the prosecution process for the entry of illegal used apparel and shoes into the customs area originating from Singapore and Malaysia in the land and sea border area. APH requires accurate information regarding the target modes of transportation used, transportation routes, and the main actors in order to carry out this coordination, particularly the entry points for illegally imported goods through the coast of Sumatra and spreading into customs areas such as Sumatra, Kalimantan, and Java. As a result, all parties’ help is required, including data/information support from Indonesian ambassadors and attaches in Malaysia and Singapore.
  5. Regarding the process of tracing data on the flow of illegal used clothing and shoes import business transactions in order to identify the primary actors, the PKTN Directorate General will form an Integrated Balpres Oversight Team involving PPATK, TNI POLRI, and related technical ministries such as the Coordinating Ministry for Economic Affairs, the Ministry of Industry, and the Ministry of Finance. The Balpres Oversight Integrated Team began with the formation of joint coordination with the Whatsapp Group.
  6. In response to the findings of the Reuters news report, the PKTN Directorate General will deliver a diplomatic note through the Ministry of Foreign Affairs of the Republic of Indonesia to the Singapore government, protesting the export of waste in the form of used shoes.
  7. Furthermore, in order to reduce the spread of online sales centers via Instagram, Tiktok, and Facebook, as well as marketplaces (such as Tokopedia, Bukalapak, and so on), the PKTN Directorate General has issued instructions and warnings on online sales of imported secondhand apparel and shoes. In the future, collaboration with the Directorate General of Applications and Informatics, as well as the Ministry of Communication and Informatics, will be carried out in the context of cyber patrols.

TO BE CONTINUE ISSUE 29

(Red B-Teks/Ly)

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