Indonesia probes fabric import impact on domestic industry

Like India, Indonesia is also facing an influx of fabric imports from other countries, causing significant challenges for its domestic industry. The Indonesian government has launched an investigation into the import of textile products to protect its local industry from foreign competition. 

The global slowdown in textile trade has led exporting nations like China and Bangladesh to seek opportunities in non-traditional markets. As a result, many textile exporting countries, including India and Indonesia, are experiencing an influx of ready-made garments and their upstream products, such as fabric and yarn. 

According to media reports, the Indonesian Trade Safeguard Committee, under the trade ministry, commenced an investigation following a formal request from the Indonesian Textile Association in September. The diminishing market share of domestic producers and declining employment in the sector are clear indicators of the surge in imported goods. These factors have driven the Indonesian government to initiate this investigation. 

Sanjay Jain, managing director of TT Limited and chairman of the ICC Textiles Committee, told Fibre2Fashion, "When the Indonesian government initiated a probe into the influx of fabric from other countries, India did not take any similar action." He questioned why India cannot adopt a comparable approach to protect its domestic industry if Indonesia can initiate such an investigation. 

The World Trade Organization (WTO) allows member countries to conduct investigations as part of safeguard measures. 

ALCHEMPro News Desk (KUL)