BANDUNG REGENCY– West Java Province Regional Secretary (Sekda) Iwa Karniwa accompanied Indonesian Minister of Industry Airlangga Hartarto for working visit to UPT Tekstil Majalaya, Jl. Kondang No. 41 Majalaya Kab. Bandung, Tuesday (18/09/18). In this working visit a dialogue was held with the UMKM business community of the Textile Market and Textile Production (TPT) share in Majalaya.
Iwa said the textile industry still has enormous potential to grow and develop in the future. Therefore, based on the National Industrial Development Master Plan (RIPIN) in 2015-2035, that sector is prioritized for development to contribute significantly for the national economy.
"On this occasion, that is one of the government's steps to encourage and advance the textile and the products industry in implementing clean production in there. So, to increase the competitiveness of the products in local and foreign markets, of course by increasing the effectiveness of production even though the price of raw materials is also high, "said Iwa.
While the Chairperson of the TPT Majalaya Aep Hendar complained about the number of industrial players in Majalaya and surroundings with the decline in the potential of MSMEs, such as the high cost of raw materials for weaving yarn, spare parts, and production costs which affected the selling price of products. This was also influenced by the decline in the rupiah exchange rate against the US dollar. "The price increase is certainly not in line with the increase in selling prices of products. On the other hand it is very difficult to adjust to raw materials. Considering that raw material is the biggest component up to 40% of HPP, "said Aep.
"Some of our members have reduced their production capacity, some have reduced production capacity, some have stopped for a moment to waiting for prices to stabilize, and while some of our employees are also being in their home," he added.
Responding to the problem, the Indonesian Minister of Industry Airlangga Hartarto called on the Majalaya TPT to increase productivity in particular, "with the weakening of the rupiah, all imported raw materials will definitely increase. Of course, one way to mitigate the increase is charged to consumers or by increasing productivity, "he explained.
"If this price depends on international prices, at the time of increase, domestic prices will also increased. One of them is cotton, we import it and if polyester is partly from local area, rayon can be an alternative that will be produced by nationally. Of course switching from cotton, polyester and rayon materials is combined to mitigate changes in costs, "he said.
West Java Province has an important role in the national economy. West Java Gross Regional Domestic Product (PDRB) gave the third highest contribution of 14.88%, after DKI Jakarta and East Java in the National Gross Domestic Product (GDP).
The development of the export market share of West Java at the end of 2017 was contributed by the textile and the products sub-group (19.8%), followed by motorized vehicles (17.5%), electronics (17.4%), and chemicals (7.0%) . However, the market for textile exports continues to decline, with the highest number of textile exports in 2000 reached at 25.44%.