President Joko Widodo (Jokowi) highlighted the proliferation of cheap imported clothing sold on e-commerce platforms.
Citing CNN Indonesia, Jokowi stated that 90% of cheap goods on e-commerce originate from imported products. He mentioned encountering imported clothing sold for Rp5,000 (approximately US$0.32) on an e-commerce site.
He attributed the influx of cheap imported clothing to predatory pricing practices aimed at eliminating competitors. Jokowi referred to this as a form of economic colonization.
"We are unaware that we are being economically colonized. Maybe the initial price was Rp5,000. Once they gain a foothold, they become addicted, then the price is raised to Rp500 million. What can we do? We are helpless because we have become dependent," he said at the State Palace on Wednesday (4/10/2023).
Meanwhile, data from the Central Statistics Agency (BPS) shows a significant amount of imported fabrics and clothing in July 2023.
Knitted fabrics were the most imported category compared to clothing and accessories, with 16.76 million kilograms imported in July 2023.
The value of imported knitted fabrics was substantial, reaching US$127.3 million or Rp1.99 trillion (assuming an exchange rate of Rp15,684 per US$).
This large import volume of knitted fabrics contrasts sharply with exports, which amounted to only 1.41 million kg in July 2023.
Next is woven fabric, the base material for flannel shirts, with an import volume of 13.8 million kg. This figure includes special and spun yarns.
The import value of woven fabrics, special yarns, and spun yarns reached US$48.78 million or Rp765.12 billion.
Laminated textile fabrics amounted to 5.86 million kg, with imports valued at US$47.27 million or Rp741.52 billion.
Special woven fabrics ranked fourth, with an import volume of 1.91 million kg and an import value of US$23.49 million or Rp368.47 billion.
In the clothing category, knitted clothing and accessories were the most imported, reaching 1.79 million kg with an import value of US$23.62 million or Rp370.54 billion.
However, exports of knitted clothing and accessories were significantly higher than imports, with a volume of 19.91 million kg.
For non-knitted clothing and accessories, the volume was 1.32 million kg, with imports valued at US$23.10 million or Rp362.35 billion.
The following are the types of fabrics and clothing imported in July 2023:
* Knitted fabrics: 16,766,688 kg
* Woven fabrics, special yarns, and spun yarns: 13,806,568 kg
* Laminated textile fabrics: 5,864,335 kg
* Special woven fabrics: 1,919,050 kg
* Clothing and accessories (knitted): 1,791,093 kg
* Clothing and accessories (non-knitted): 1,326,342 kg
* Headwear and parts: 455,506 kg
* Other finished textile goods: 5,915,442 kg
(See also: Imports of Used Clothing Have Decreased Since the Pandemic)