The Indonesian Industry Ministry has confirmed that its policy governing imports of textiles and garment industry aims to balance supply against demand whilst safeguarding domestic production.
Ministry spokesperson Febri Hendri Antoni Arif said the restriction policy isn’t intended to obstruct business, but rather to align imported goods with domestic market requirements.
“The principle centres on maintaining the supply-demand balance, matching domestic demand against domestic industry capacity,” Arif said on Monday.
He offered an example whereby if domestic market demand for downstream products reaches 100, whilst domestic industry can supply 80, the import requirement stands at only 20.
Import control proves necessary so the volume of goods entering the country doesn’t exceed demand, which could otherwise place pressure on the national industry.
“Therefore, should the policy instrument be delegated by the Trade Ministry to the Industry Ministry, we will use it to control the supply-demand balance, avoiding burdens on domestic industry, demand, or production,” he explained.
Regarding concerns over restrictions on imports of global textile products, including premium items or luxury goods, Arif affirmed the government continues encouraging the use of products domestic manufacturers can produce.
He explained that purchasing domestic products yields a greater economic impact given that added value remains within Indonesia, covering company profits, tax revenue, and manufacturing wages.
“When we buy domestic products, we help citizens working within the domestic manufacturing industry support their families,” Arif said.
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