The Ministry of Industry (Kemenperin) has stressed the importance of transparency, administrative compliance and strategic consistency for the national textile industry in maintaining competitiveness, especially in the upstream sector under the Indonesian Fiber and Filament Yarn Producers Association (APSyFI).
Based on data from the National Industrial Information System (SIINas), reporting compliance among APSyFI member industries remains low. Of 20 member companies, only 15 reported their industrial activities, while the other 5 companies were absent or negligent.
“There are still large APSyFI member companies that have not reported their performance at all. Yet this reporting obligation is a form of industrial accountability to the state. The lack of administrative commitment actually weakens the position of an association that claims to be at the forefront of the national textile industry,” said Kemenperin spokesperson Febri Hendri Antoni Arief in an official statement in Jakarta on Saturday (23/8).
Febri explained that Kemenperin's data show an anomaly in the performance of APSyFI member industries. While the association asks the government to tighten imports, there has been a significant surge in imports by its own members.
Data show that the volume of yarn and fabric imports by APSyFI member companies rose by more than 239% in one year, from 14.07 million kilograms (2024) to 47.88 million kilograms (2025).
“Some APSyFI members use bonded zone facilities or General Importer Identification Numbers (API Umum), so they are free to import on a large scale. On the one hand, they demand protection, but on the other they are active importers. This clearly contradicts the spirit of industrial self-reliance,” he said.
Over the years, the government has provided various forms of protection and fiscal instruments for the upstream textile industry, including Anti-Dumping Import Duties (BMAD) on Polyester Staple Fiber (PSF), which have been in place since 2010 and apply until 2027.
In addition, there are BMAD on Spin Drawn Yarn (SDY) in force until 2025, Safeguard Import Duties (BMTP) on synthetic fiber yarn in force until 2026, and BMTP on fabric in force until 2027.
“This means APSyFI member industries have so far enjoyed a double advantage, namely tariff protection as well as import facilities. Unfortunately, this has not been matched by new investment or technological modernization,” Febri explained.
Kemenperin stressed that import recommendation and industrial protection policies are always based on the principles of fairness and balance between upstream, intermediate and downstream sectors. Export-oriented downstream industries are given facilities to be competitive in global markets, while the domestic market is directed toward import substitution in line with verification of national industrial capability.
Febri added that if the proposed BMAD at a rate of 45 percent were applied according to KADI's calculations, the risk would be layoffs of up to 40,000 workers in downstream industries. “This would be a national tragedy. Meanwhile, the potential layoffs in the upstream sector, which are much smaller, can still be mitigated by optimizing local absorption,” he stressed.
The textile sector itself grew by more than four percent in Q1 and Q2 2025. This is a positive achievement that must be maintained.
“Kemenperin hopes industry associations can view government policy objectively. Amid this growth, what is needed is collaboration and compliance, not narratives that mislead the public,” Febri concluded.
Source: Press Release of the Ministry of Industry