The Indonesian Textile Association Says It Will End Its Import Restrictions On Fabrics.

Ade Chet, chairman of the Indonesian textile association (API), welcomed the end of the Indonesian trade department's < a href= "http://www.91se91.com/news/index_c.asp > cotton fabric < /a > import restriction, which began in May 1, 2012.

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< p > > a href= "http://www.91se91.com/pioneer/" > A De chate < /a >, as one of the contents of restricting imports: the tariff of imported cotton fabrics is raised from 2.5% to 7.5%, which is 1 great challenges for the Indonesian textile and garment industry.

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< p > he added that, like increasing import tariffs, the stipulation did not differentiate the finished fabrics and billets, which also caused difficulties in the Indonesian textile and garment industry.

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< p > "this policy has proved to be very dangerous," Mr. Chet said.

"Our government is suffering from the trade deficit, so we look for 1 short-term solutions to solve this panic, but it is also very dangerous, not only for textiles and clothing, but for all industries, because every industry will depend on imports of certain materials, not only for local consumer products, but also for export products."

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< p > > a href= "http://www.91se91.com/news/index_c.asp" > Indonesian textile association < /a > chairman explained that imported cotton fabrics, especially white cloth, are indispensable to the Indonesian textile and garment industry.

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< p > "we still need to import fabric, especially the larger width, such as the width of 3.6 meters of gray cloth.

We do not produce this type of material locally.

But because of these restrictions, importing this kind of fabric that we need is very difficult, "he added." the government has ignored these effects, and has not yet found 1 appropriate solutions. They will solve the deficit first, but they can not get any solution. "

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< p > the restrictions on the import of cotton fabrics will be lifted in June 2014 unless there is a company's application before the final 1 minutes of next week and the government's persuasion to continue the import restriction.

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< p > Mr. Chet believes that although the current policy has caused many problems, Indonesia's textile and clothing exports are gradually achieving its total export target of US $13 billion in 2013, which is 4.3% higher than that in 2012.

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< p > he holds a positive attitude towards the development of textile industry in the next few years.

Mr. Ade Chet pointed out that more and more textile and garment enterprises in Vietnam, China and South Korea are looking for investment opportunities in Indonesia, but they are now more interested in investing in Vietnam, because Vietnam has lower electricity and labor costs.

However, he added: "the main advantages of investing in Indonesia are: the domestic consumer market is very large, ASEAN has a large population (more than 240 million), labor resources are abundant, and the minimum wage policy (non national policy varies from province to country).

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< p > "we have a positive attitude towards the future," he said. "Indonesia is still 1 developing countries, and our per capita income is still very low, so our wages are also low."

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< p > Mr. Chet added that the association of Southeast Asian Nations (ASEAN) Economic Community (AEC) has committed to the Indonesian textile and clothing industry that the tariff and other barriers will be abolished between the 10 ASEAN nations, and the economic community will take effect in 2015.

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< p > "we hope AEC will bring us prosperity.

Our internal market will reach 600 million people, both opportunities and challenges.

But I believe that this will bring more benefits to our industry, especially through free trade.

He concluded.

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