The weakening rupiah exchange rate against the US dollar has once again become a serious challenge for the national textile and textile product (TPT) industry. This situation has prompted industry players to adjust selling prices to offset the increasing surge in production costs.
Redma Gita Wirawasta, Chairman of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), stated that the rupiah's depreciation of around 8 percent since the beginning of the year has increased the industry's cost burden, especially since most raw materials are still dependent on imports. As a result, producers have little choice but to adjust product prices in the market.
According to Redma, price increases have actually been implemented previously due to rising raw material prices. However, the weakening rupiah has further exacerbated the pressure faced by businesses, making further price adjustments unavoidable.
However, increasing selling prices is not an ideal solution for the industry. Domestic textile products still have to compete with lower-priced imports, particularly from China. This situation further limits domestic producers' ability to set competitive prices.
Redma assessed that the strong flow of imported products remains a major challenge for the national textile industry. He also criticized protection policies, which he deemed incapable of providing real support to domestic producers. He stated that the safeguard policies for synthetic and artificial yarns stipulated in Minister of Finance Regulation Number 37 of 2026 are still too low to have a significant impact on import control.
Continuously increasing cost pressures are also eroding industry profitability. Under current conditions, businesses are attempting to pass on rising production costs to consumers because profit margins are already very thin. If product prices are forced to follow the prices of cheaper imported goods, many companies could potentially incur losses.
Some industry players are even choosing to hold products as inventory rather than selling at prices that do not cover production costs. This measure is taken to avoid greater losses that could ultimately threaten the sustainability of factory operations.
To maintain the competitiveness of the national textile industry, Redma emphasized the importance of more effective domestic market protection policies. He believes that strengthening import oversight and implementing appropriate trade instruments can provide market certainty for domestic producers while maintaining job security in the textile sector.
According to him, supporting the national industry is a crucial factor in ensuring business players can survive amidst pressures from production costs, fluctuating exchange rates, and intense competition from imported products. Without adequate policy support, the national textile industry is feared to face increasingly significant challenges in maintaining production capacity and its contribution to the national economy.