APSyFI Flags Crisis in Indonesia Due to Imported, Smuggled TPT Items

The Indonesian Fibre and Filament Yarn Producers Association (APSyFI) has sounded the alarm over a growing crisis in the nation’s textile and textile product (TPT) industry. The association has called upon the government to act swiftly against the surge of imported and smuggled goods that threaten to dismantle the domestic textile sector — once a backbone of Indonesia’s economy.

In a recent appeal to the Minister of Finance, Purbaya Yudhi Sadives, APSyFI chairman Redma Gita Wirawasta pointed out alarming discrepancies between Indonesia’s official import records and the export data of its trading partners. These mismatches suggest a high probability of illegal textile imports bypassing customs and eroding the competitiveness of local manufacturers.

APSyFI Secretary-General Farhan Aqil Syauqi highlighted how import facilities such as KITE, PLB, KB, and GB—originally designed to support raw material imports—are being misused for bringing in finished textile goods, particularly from China. As a result, local markets are now flooded with cheap imports, driving domestic producers to the brink of collapse.

Smuggling, Dumping & the Economic Fallout

This unchecked inflow of foreign textiles doesn’t just weaken state revenue — it cripples the entire value chain of the Indonesian textile ecosystem, from yarn producers to apparel manufacturers. APSyFI criticized the lack of efficient AI-enabled scanners and weak port-to-port manifest systems that allow such malpractice to flourish.

According to Syauqi, the nation’s textile trade balance has fallen sharply, dropping from $6 billion to $2.4 billion in 2024. He attributed this decline to the combined effect of smuggling, dumping practices, and aggressive free trade agreements that favor low-cost Chinese exports.

Call for Stronger Government Action

APSyFI has proposed immediate measures including:

• Strict enforcement of anti-dumping, anti-subsidy, and safeguard laws

• Tighter port monitoring and scanner integration

• Tax incentives for local apparel producers using domestic or recycled materials

• Access to green and affordable financing for sustainable manufacturing

The association aims for 16.5% annual growth by 2035, targeting a 9.7% increase in exports and a 26% decline in imports within a decade.

Conclusion

Indonesia’s textile industry stands at a critical juncture. Unless swift measures are taken to combat smuggling and unfair trade practices, the sector risks losing its global competitiveness and millions of domestic jobs. APSyFI’s call for action isn’t just a plea for protection — it’s a roadmap for revival, sustainability, and economic independence.