Indonesia's Industry Ministry Criticizes Industry Associations for Being Unconscionable

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The Ministry of Industry pointed out that the Indonesian Chemical Fiber Filament Yarn Association (ICFYA), while asking the government to strengthen import restrictions to protect the local industry, has condoned member companies to significantly increase imports of raw materials, forming a policy arbitrage.Total Import of Yarns and Fabrics by Association Members, 2024-2025Soaring from 14.07 million kilograms to 47.88 million kilograms, an increase of 2,391 TP3T. 15 firms that have taken advantage of the free trade zone policy have circumvented the review through the General Import License. In fact polyester staple fiber tariff protection was extended to 2027, synthetic fiber yarn protection to 2025, and fabric protection to 2027.

Only 15 out of 20 member enterprises submit industrial activity reports in accordance with the law, and 5 large enterprises have been absent from supervision for a long time; enterprises enjoy tariff protection and import facilitation, but have not invested in technological transformation or new investment; if required by the associationAddition of 45% anti-dumping duty, which will result in downstream40,000 workers lost their jobsThe

The Ministry of Industry emphasized that it would maintainbalancing act, upstream import substitution through tariffs, while safeguarding the ease of raw material imports to maintain the international competitiveness of downstream export-oriented firms. the textile industry remained in the first half of 20254% GrowthThe Ministry of Industry calls on the AssociationStop Misleading Opinion and Move Toward Compliance Collaboration. The controversy reflects Indonesia's manufacturingStructural contradictions, i.e., upstream protectionism conflicting with downstream globalized demandThe

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