Bandung, West Java (ANTARA) - Indonesia's Minister of Cooperatives and Small, and Medium Enterprises (SMEs) Teten Masduki said the practices of predatory pricing for imported products have caused a blow to those of domestic textile industry.
The influx of imported textile products into Indonesian market at cheaper prices, and sold online have made domestic products unable to compete, he said in Bandung District, West Java, on Sunday.
"I received a lot of inputs regarding this matter, especially products from China with unreasonable prices. This cheaper price is what we called predatory pricing. It is affecting our domestic and offline traders, including the domestic production as well," he said.
According to the minister, the inability of domestic textile products to compete has nothing to do with quality. Instead, it is closely related to the Cost of Goods Sold (COGS) of the imported goods.
"The COGS do not add up. In the end, our domestic industry cannot compete. We want to follow up this problem. Why are we being flooded with cheap imported goods?" Masduki said.
Meanwhile, an owner of a weaving factory in Bandung District, Dudi Gumilar, expressed his concern regarding the phenomenon of cheap imported goods.
"We still have a stock of 1.5 million meters in our warehouse. However, our production still continues. We do not know how long we can operate," he conveyed.
Furthermore, Chairman of the Bandung Garment Entrepreneurs Association (IPKB) Nandi Herdiaman also confirmed the same challenge in the textile business.
According to him, many producers have closed their businesses due to slow demand.
"This phenomenon leads to unemployment in West Java. We cannot survive anymore. We hope Minister Masduki can take serious actions to address this problem," he remarked.
Minister Masduki responded that he would bring the entrepreneurs' inputs and findings to be discussed at higher level while taking necessary measures to make cheap imported goods enter domestic market, and improving existing regulations.
"I will report this matter. However, the authority does not belong to me, but belong to Trade Ministry and Finance Ministry. The prices of imported goods, like those of China, cannot be lower than the COGS. If we implement the same regulation, we will be able to protect our domestic industry," he disclosed.
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