JAKARTA. A deregulation, such as the Minister of Trade Regulation No.85/M-DAG/PER/10/2015 on the Provisions of Imports of Textile and Textile Products (TPT) does not necessarily facilitate the entrepreneurs.
The regulation, which is a product of the Economic Policy Package I, removes the requirements to have the recommendation of Ministry of Industry and accompanying documents, such as tax identification number (NPWP), corporate registration (TDP), and business permit (SIUP), which were previously listed under the Minister of Trade Regulation No.52/M-DAG/PER/7/2015 on the similar matter.
"The recommendations are provided to prevent abuses," Secretary General of the Indonesian Synthetic Fiber Producers Association Gita Redma Wiraswasra told KONTAN on Sunday (6/11).
Indeed, the additional recommendation was not aiming to obscure the industries of textile and textile products (TPT). However, recently the TPT business is sluggish. Gita projects that the investment in TPT sector will fall by 3% by the end of this year, whereas the investment in the sector could grow by 1% during the last year.
The incentive for imports may lead to unease in domestic textile entrepreneurs, since the imports textile may flood the domestic market. "The situation is already critical for the textile business, since the imports have increased”, said President Director of PT Asia Pacific Fibers Tbk Ravi Shankar.
The regulation was actually created to accelerate the process of loading and unloading. However, at the practical level, the process went slower due to the differences between the contents of container and the items on the documents. “The revision of Minister of Trade Regulation No 85 is necessary”, he said,
Vice President Director of PT Pan Brothers Tbk Anne Patricia Sutanto also supports the revision to improve domestic textile industries and prepare them to compete with foreign industries.
Director General of Foreign Trade at Ministry of Trade Dody Edward said that the revision of Minister of Trade Regulation No 85 is still under discussion. "We have not decided yet the revision," he said.
(Muhammad Farid/Translator)
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