"The export of polyester should be stopped because we do not have enough raw materials to meet the domestic demand. In addition, the government will build a raw materials terminal for IKM," said Euis Saedah, the General Director of IKM of the Ministr
Jakarta (ANTARA News) - The government has decided to stop exporting polyester after small and medium enterprises (IKM), especially textile and textile product mills (TPT), complained about the shortage of raw materials.

"The export of polyester should be stopped because we do not have enough raw materials to meet the domestic demand. In addition, the government will build a raw materials terminal for IKM," said Euis Saedah, the General Director of IKM of the Ministry of Industry, here on Wednesday.

"The rising prices of raw materials such as mori, cotton, and other fabrics made from raw cotton fibres, along with their scarcity, have affected IKM`s productivity of confection and batik," she added.

"Because of the rising prices of raw materials and complementary materials for cotton fabrics, the products are not priced competitively. In addition, people looking for high quality products still go for the imported ones. Therefore, the domestic textile accessories industry needs to be developed," Saedeh explained.

She pointed out that IKM continued to face challenges in gaining access to capital and market share.

"Therefore, the government has issued several policies facilitating easier access to capital, the last one being Credit for Public (KUR)," Saedeh noted.

"The main problems faced by IKM are in relation to assurance and administrative feasibility during the process of making a proposal for the submission of credit. In order to tackle the problem, the government has planned to set up microfinance institutions," she said.

Saedah stated that the government would establish a raw materials terminal in an effort to support the competitiveness of IKM products against imported products.

"The government will seek investors for the raw materials terminal of IKM," she added.(*)

Editor: Heru Purwanto
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