TEMPO.CO, Jakarta - The government's plan to apply an anti-dumping duty on three types of yarn is expected to make things tougher for the textile industry that is already burdened by the power tariff hike, rupiah depreciation and an increased minimum wage.

Therefore, the Indonesian textile Association (API) voiced their objection over an investigation conducted by the Indonesian Anti-Dumping Committee (KADI) on the three types of imported yarn. The investigation committee is recommending the extension of additional duties on the imports of spin drawn yarn, partially oriented yarn and drawn textured yarn.

API chairman Ade Sudrajat said the dumping allegation is baseless because the investigation committee is simply referring to product codes that do not specify each item's type.

"Many types of yarn are unable to be produced in Indonesia. Obviously they would not compete directly with local products," he spoke during a press conference in Jakarta, yesterday.

Ade said there are inequalities in the demand and supply of yarn in the domestic market. Thus, import is the only way to overcome yarn shortage.

API noted that, as of the first half of 2014, 25,000 tons of yarn production was absorbed by captive consumption out of the 28,000 tons produced. The remainder was sold to the market. Yet, the domestic market demand reached 7,000 tons of yarn.

KADI chairwoman Ernawati said the decision to impose the anti-dumping duty is not final. "We have just reached the essential facts presentation stage. There is still a chance for various parties to provide us with inputs; including the textile industry," she told Tempo yesterday.

INDRI MAULIDAR | AMIR TEJO | PRASETYO DHARMA