The closures were triggered by the increasing illegal imports, APSYFI general chair Redma Gita Wirawatasta said in a statement.
During the COVID-19 pandemic in 2021, textile imports from China stopped, and therefore, the domestic industry had recovered. However, when the lockdown ended and imports reopened, illegal goods flooded the domestic market, leaving many companies forced to stop operations, he said.
"The problem is uncontrolled imports. This reduces our industrial utilisation and has an impact on other sectors, such as electricity and logistics," he said.
The textile industry has a share of 11.73 per cent in the country’s industrial electricity consumption and contributes 5.56 per cent to the national gross domestic product (GDP), he noted.
However, most of the domestic market is now filled with illegal imported goods that cause losses to the state, both in terms of taxes and import duties. Around 40 per cent of goods entering Indonesia are not officially registered, said Redma.
He urged the government to immediately address this issue to allow the domestic textile industry to recover.
ALCHEMPro News Desk (DS)
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