The recent surge in cloth imports has prompted the Indonesian Trade Security Committee (KPPI) to launch an investigation into extension of safety measures, says Mardjoko, Chairman, KPPI. The request for the investigation was submitted by the Indonesian Textile Association (API), as per an Indo Textiles report. The investigation was launched into import of fabrics including 107 8-digit Harmonized System (HS) numbers, according to the 2017 Indonesian Customs Tariff Book (BTKI).

The 107 HS numbers fabrics were divided into five segment, namely: woven fabrics from cotton, woven fabrics of synthetic and artificial staple fibres, woven fabrics of synthetic and artificial filament yarns, special woven and embroidered fabrics and knitted fabrics.

Mardjoko added, the performance of domestic industry which deteriorated during the 2019-21 period due to the continuous financial losses caused by declining domestic production and sales volumes; an increase in ending inventory due to an increase in the number of unsold goods; decreased productivity; decreased capacity used; reduced number of workers; as well as the declining market share of applicants in the domestic market.

Data from the Central Statistics Agency shows, during 2019-2021, fabric products imports declined by 21.56 percent. In 2019-20, these imports declined 42.58 per cent. However, in 2020-21, they increased 7.16 per cent. Most of Indonesia's cloth imports come from China, South Korea, Vietnam, Hong Kong, Taiwan, and Malaysia.

The largest number of cloth imports was from China with a share of 48.87 per cent in 2021, followed by South Korea 12.99 per cent, Vietnam 9.98 per cent, Hong Kong 9.45 per cent, Taiwan 7.03 per cent, and Malaysia 5.58 per cent.