Businesses Need Policy to Open US Yarn Imports

Business actors in the textile and textile product sector (“TPT”) are asking the government to immediately make a policy to shift imports of finished products to open up opportunities for cotton imports from the United States (“US”). Cotton imports are needed to get tariff discounts so they can meet the 20 percent US content requirement for TPT products.

Redma Gita, Chairman of the Indonesian Association of Filament Fiber and Yarn Producers (Asosiasi Produsen Serat dan Benang Filament Indonesia – “APSyFI”), stated that the government needs to redirect imports from several countries with significant TPT import shares.

“To enable private sector (yarn manufacturing industry) imports, the government should reduce imports of yarn, fabric, and finished garments from China, Vietnam, and Bangladesh,” he told Hukumonline.

He added that this policy will promote healthier growth in the upstream industry, increase utilization rates above 75%, and encourage the creation of new jobs.