The Association of Synthetic Fiber and Filament Yarn Producers (APSyFI) has openly expressed concerns regarding the increasingly dire situation in the textile industry due to the flood of illegal imports from China. This issue has led many factories to shut down and caused investors to withdraw from Indonesia. These concerns were conveyed during a hearing with the Trade Policy Agency of the Ministry of Trade. The situation worsened recently when the Ministry rejected the implementation of Anti-Dumping Import Duty (BMAD) on polyester oriented yarn (POY) and draw textured yarn (DTY) products.

APSyFI’s Secretary-General, Farhan Aqil, stated that industry players are growing more anxious as conditions continue to deteriorate. Nonetheless, the association remains committed to ensuring the continuity of factory operations. According to Farhan, the matter goes beyond business—it concerns the livelihoods of countless workers. “We explained how factories are shutting down quietly, contracts are being canceled, investments withdrawn, and thousands of workers losing their jobs. At that moment, we felt like the government wasn’t paying attention,” Farhan said in a written statement on Tuesday (August 5, 2025).

During the meeting, APSyFI detailed the consequences of the government's rejection of BMAD, which they see as a severe blow to the industry. The refusal to impose anti-dumping duties on POY and DTY has led to the cancellation of planned investments, further worsening the upstream sector. Investors perceive the business environment as unstable due to the massive influx of illegal imports dominating the domestic market.

“Foreign investors who had already visited the plant locations and committed to investing have now pulled out. To them, there’s no assurance of fair competition if imported goods enter freely without restrictions,” he explained. Farhan lamented that instead of protecting the domestic industry, current policies are hastening its downfall. Several planned investments and industrial recovery initiatives have been scrapped because domestic product protections were not enforced. Previously, three APSyFI members had planned to reactivate production capacity this year, and there was a foreign direct investment (FDI) plan worth US$250 million or approximately IDR 4 trillion.

“Some foreign investors had visited factory sites, saw the potential in restarting idle machines. Even CEOs of multinational textile firms visited and showed strong interest. But once they found out BMAD was rejected, everything was canceled,” he said.

He added that not only investment interest was lost, but even a prominent sports brand—previously reliant on imports from China—had intended to shift to local production to mitigate supply chain risks and speed up distribution. “The contract had already been signed, it just needed to be executed. But without protection for local products, they backed out. From their perspective, why invest if similar goods can be imported at lower prices with no obstacles?” he continued.

Farhan further revealed that on the ground, the situation is worsening. Many factories that had been operating under limited conditions are now shutting down production quietly. Meanwhile, raw material imports have spiked significantly. “For example, Asia Pacific Fibers (POLY) has closed, while others are barely hanging on. Our data shows filament yarn imports have surged by 70% to 300% since 2017, depending on the type. This isn’t a normal trend—it’s a sign of slow industrial collapse,” he explained.

He also emphasized the significant social and economic effects this crisis is causing. Industry players are facing non-performing loans, machines are idle, and workers are being laid off. Moreover, the younger generation is losing faith in the manufacturing sector. “Many workers have already lost their jobs. Young people no longer want to work in factories because they see no future in this industry,” he added.

Farhan highlighted that this downfall is not the first time the textile and related industries have suffered due to biased policies. He even mentioned the presence of mafias involved in manipulating quotas, affiliations, and import interests. “Every five years, there’s a cycle of destruction. Previously it was due to crises, now it’s policy. We are at rock bottom. Just waiting for everything to die out one by one,” he stated firmly.

With more factories closing within the textile industry ecosystem, Farhan warned of an imminent deindustrialization. APSyFI is urging the government to create policy decisions based on thorough analysis and aimed at collective benefit—not serving specific interests. “We cannot stay silent. This industry took decades to build and cannot be continuously destroyed by short-term policies. This is no longer just about business. It’s about national industrial sovereignty,” he concluded.