The three-month pandemic has led to a 90 per cent drop in production utilization causing 50 per cent of textile factories in Indonesia to permanently close in September. The Indonesian Textile Association (API) revealed the utilization of large industrial production is only 10 per cent remaining. This is lowering the industry financial condition to run low. API estimates the industry to last only until next September.

The pandemic had launched export markets and domestic products. As a national strategic industry that requires a large workforce, this industry needs serious attention from the government. Therefore, in order to ease business, some entrepreneurs have asked for the assistance in the form of easy banking loans, postponed payment of electricity tariffs during April-September and provided Corporate Tax PPH tax relief for 2020.

Since production in China has been disrupted, the Association noted around 17 containers of textile products coming from China. This number has increased with illegal smuggling. Some of the products are finished goods, so it is increasingly difficult for domestic industries to sell goods. This condition is exacerbated by the sluggish demand for textile products.

China is the largest exporter of textiles and textile products (TPT) to Indonesia. In 2018, the volume of TPT imports from China reached 4.392 tonne.