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Jakarta Post

Indef warns of illegal textile imports through PLBs

  • Eisya A. Eloksari

    The Jakarta Post

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Jakarta   /   Mon, November 4, 2019   /  05:18 pm
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Customers examine textile products at Mayestik market, Jakarta. Many local textile producers have closed their factories because of the influx of smuggled cheaper imported products.(JP/Wienda Parwitasari)

Illegal imports of raw textile materials are still able to enter the Indonesian market through bonded logistic centers (PLBs) despite the issuance of stricter import regulations, causing a serious problem for local producers, an industry observer has warned. Esther Sri Astuti, a program director at think tank the Institute for Development of Economics and Finance (Indef) acknowledged that the Trade Ministry had issued Regulation No. 64/2017 recently to impose stricter controls on the import of raw textile materials through the PLBs. However, because of poor enforcement, imported raw textile materials were still being smuggled into the local market through the PLBs, which are only supposed to receive imported raw materials for the production of export-oriented products. The newly revised textile import regulation still allows loopholes for unscrupulous importers to smuggle...