DEN Pushes for Regulatory Certainty to Save the Textile Industry

The National Economic Council ("DEN") has stated that the issues faced by the textile and textile product ("TPT") industry are more complex than just the presence of Minister of Trade Regulation No. 8 of 2024 ("Permendag 8/2024") concerning the Third Amendment to Minister of Trade Regulation No. 36 of 2023 on Import Policy and Regulations ("Permendag 36/2023").

DEN’s Executive Secretary, Septian Hario Seto, explained that based on their assessment, several issues were identified regarding the domestic TPT industry. According to Seto, Permendag 8/2024 has not effectively addressed the issue of illegal imports that have long plagued the domestic market.

“But as I see it, Permendag 8/2024 cannot address the illegal import issue,” Seto told Hukumonline.com.

Another issue affecting the domestic TPT industry, according to Seto, is regulatory uncertainty that hampers industrial activities. In addition to frequently changing import and export regulations, he cited the Provincial Minimum Wage ("UMP") as a burden for labor-intensive industries.

Seto emphasized the need for a clear and economically based formula to determine annual wage increases. This aims to create fairness and balance between workers and employers.

“This formula must be mutually agreed upon between the government, labor representatives, and employers. So that it is fair and creates equilibrium. That is important,” he stated.