The government plans to take firm action against illegal imports of textile and textile products as these have been hindering business and impacting ind ustrial growth in the manufacturing sector.
“We will take firm action against importers who have so far misused facilities to avoid official levies by the government,” Finance Minister Sri Mulyani said at a press conference here on Thursday.
She stated that strengthening the textile industry and the textile products sector was very important as this sector has been asked to increase production to boost national exports.
Smuggling of used clothes into several regions of the country to meet the increasing demand for cheap clothes has been disrupting growth of textile and textile products sector.
Certain people were illegally importing products. These people held import licenses to transfer goods to other parties. Businessmen dealing in textile and textile products exploited these licensed importers.
“We will enforce the law. We have invited police officers to a meeting attended by the chief of the crime investigation department to take a stronger and more consistent action against illegal imports,” she assured.
Sri Mulyani informed that she would also invite other ministries to review regulations relating to textile and textile products imports. Some of these regulations overlap and run against the needs of the public, trade and industry.
The TPT (textile and textile products) is a labor intensive industry that can absorb a lot of workers and even create new jobs in the distribution and trade sectors, she added.
In 2016, Indonesias TPT exports contributed 9.61 percent to the total non-oil and gas exports, which is the second highest after palm oil exports, recorded at 10.3 percent.
Based on national law enforcement data in 2015, 162 cases of smuggling were aborted by the Directorate of Customs and Excise of the Ministry of Finance. Until October this year, 151 cases of TPT smuggling cases had come to light.
The Directorate of Customs and Excise would tighten coordination and supervision in cooperation with the Corruption Eradication Commission, the Indonesia Police, the Ministry of Trade as well as the Ministry of Industry to solve the TPT import problem.
With improved TPT import policies and their implementation, the national manufacturing industry is expected to grow while domestic prices of TPT would be more stable and state revenues more optimal.