Illegal Apparel Import Expected to Double in Ramadan

TEMPO.CO, Jakarta -  National businesses estimated the fasting month of Ramadan will see a surge in the imports of illegal clothing by 100 percent, due to the seasonal price increases by 10 to 20 percent during Ramadan and Eid, chairman of the Indonesian Textile Association (API) Ade Sudrajat said yesterday.

According to Ade, the price increase will prompt importers to take profits as much as possible, especially with the proposed enactment of an Anti-Dumping Duty (BMAD) on imported yarn.

Another reason, said Ade, is because the cost to ship clothes from China to Indonesia is ironically cheaper than the shipping costs between cities in Java.

 "The shipping cost from Shanghai to Jakarta is only US$400 (approx. Rp4.8 million) per container while the cost from Semarang to Jakarta is Rp10 million," Ade said.

In 2013, clothing imports in Indonesia reached 1.96 million tons in volume, worth US$8.47 billion. Meanwhile, apparel exports reached 2.1 million tons with a value of US$12.68 billion.

The rise of illegal clothing imports, said Indonesian Employers Association chairman, Franky Sibarani, will suppress the local textile industry. Illegal imports into Indonesia, he said, come mostly from China and South Korea.

ALI NY | INDRI MAULIDAR