A worker completes production of sarong cloth in a textile factory in Majalaya industrial estate in Bandung regency, West Java. — Photo courtesy of Antara

HÀ NỘI — The Indonesian Textile Association (API) has blamed the stagnation of the textile industry for increasing influx of imports that negatively affect the local manufacturing.

The Indonesian Ministry of Industry has published a list of bankrupt textile factories, including businesses that had been operating for decades and had stable exports.

The Purchasing Managers' Index (PMI) in Indonesia's manufacturing sector fell to 49.2 in September this year.

API Vice President David Leonardi said that the PMI is still in the negative zone (below 50) because Indonesia's economic conditions have not improved, resulting in a decline in people's purchasing power.

To increase the PMI again, consistent policies are needed, including support and protectionist policies.

According to the official, this policy package will create healthy trade competition in the domestic market, thereby promoting industrial production activities, then increase the PMI value, especially for Indonesia's textile industry and textile products.

According to API, the government needs to ensure market protection for the local industry, especially in the face of increased imports.

The loosening of imports and inconsistency of current regulations have caused imports with low prices to flood into the domestic market in recent times. — VNS