
Indonesia’s Minister of Cooperatives and Small, and Medium Enterprises (SMEs) Teten Masduki said the practices of predatory pricing for imported products have caused a blow to those of the domestic textile industry.
He noted that the entry of cheaply priced imported textile products into the Indonesian market offered online, had rendered native products uncompetitive.
“I received a lot of inputs regarding this matter, especially products from China with unreasonable prices. This cheaper price is what we called predatory pricing. It is affecting our domestic and offline traders, including the domestic production as well,” he said.
The minister asserts that lack of competitiveness has nothing to do with the quality of indigenous textile products. Rather, it is strongly tied to the imported items’ Cost of items Sold (COGS).
Nandi Herdiaman, the chairman of the Bandung Garment Entrepreneurs Association (IPKB), likewise acknowledged the similar difficulty facing the textile industry. He claims that due to weak demand, numerous producers have shut down their operations.
In response, Minister Masduki stated that he would review the suggestions and conclusions of the businesses at a higher level while also taking the required steps to allow low-cost imported items to join the domestic market and enhancing current laws.






