Among the sub-sectors of the textile and textile products (TPT) industry, jeans or denim fabric manufacturers are among those that are difficult to develop, says Redma Gita Wirawasta, Chairman, Indonesian Fiber, Yarn and Filament Association (APSyFI) The main reason for this is the Preferential Trade Agreement (PTA) with Pakistan since 2013. Wirawasta explained denim fabric is made from cotton. While Pakistan is one of the largest cotton producers in the world with a production volume of about 3.5 million tons per year, Indonesia must import cotton from the United States.

n addition to the Indonesia-Pakistan PTA, the two countries are also involved in similar agreements with Developing 8 or D8 countries that have been running since 2011. Its members include Indonesia, Bangladesh, Egypt, Malaysia, Pakistan, Turkey, Nigeria, and Iran.

Among the D8 members who are Indonesia's competitors is Bangladesh with its superior garment industry. Recently, the government issued a stipulation of PTA import duty tariffs among D8 countries through Minister of Finance Regulation (PMK) No.57/2022.

Elis Masitoh, Director-Textiles, Leather and Footwear, Ministry of Industry previously said that the regulation of import duty rates had actually been in effect since 2011. The new regulation is a revision with the entry into force of the 2022 Indonesian Customs Tariff Book (BTKI).

Meanwhile, Elis projects that the textile industry will grow 3.5 percent in the first semester of 2022, driven by the momentum of Lebaran and the opening of homecoming. Year-on-year (YoY) growth in the first quarter of 2022 is projected to be 2.94 percent, followed by a second quarter of 4.12 percent. Meanwhile, quarter-to-quarter growth in the second quarter of 2022 is estimated at 1.63 percent.