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Indonesia launches safeguard investigation on imported textiles

The Indonesian government has initiated an investigation into textile import products as an initial step to safeguard the domestic industry against foreign shipments.
Indonesia launches safeguard investigation on imported textiles ảnh 1A worker completes production of sarong cloth in a textile factory in Majalaya industrial estate in Bandung regency, West Java. (Photo: Antara)
Jakarta (VNA) - The Indonesian government hasinitiated an investigation into textile import products as an initial stepto safeguard the domestic industry against foreign shipments.

Working under the Ministry of Trade,the Indonesian Trade Safeguard Committee (KPPI) is leading the probe afterreceiving a formal request from the Indonesian Textile Association (API) inSeptember this year.

The decreasing number of workers in thedomestic textile industry, in addition to the shrinking market share ofdomestic manufacturers, is one of the indicators that the Ministry of Tradeconsiders when initiating the investigation.

In a press release on October 31, acting KPPI Chairman NugraheniPrasetya Hastuti said the committee has seen preliminarysigns of serious losses or threats of serious losses from the surge in textileimports.

The products under investigationinclude cotton woven fabric, man-made filament yarn, cotton sewing thread,cotton yarn, and fabric woven from man-made filament yarn.

The ministry saidthat imports of these products rose to 29,908 tonnes over thepast four years from just 14,843 tonnes in 2019.

This investigation is part of the safeguard measuresauthorised by the World Trade Organisation (WHO) and typically conducted by itsmember states.

Indonesia's textile and garment industry is facing difficulties in maintainingoperations as companies record plummeting export revenue due to falling demandfrom foreign markets amid the global economic downturn./.
VNA

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