Chinese Imports Impact Indonesia's Textile Industry
Indonesian authorities struggle to contain a surge of Chinese imports that have left local textile manufacturing businesses struggling to stay afloat.
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00:00These clothing manufacturers in Indonesia's Bandung district are known for hand-making local apparel, including batiks and woven fabrics.
00:11But an influx of cheap Chinese goods have left them struggling to stay afloat.
00:30A surge in products being bought online has also added to the problem.
00:40It's forced at least 12 textile factories in this region to shut down operations and lay off more than 12,000 workers.
00:51Garment makers, both factory and home-based, appealed to the government for help, staging protests in Jakarta amid anger at the loss of market share to China.
01:02It led to the Indonesian government imposing import tariffs of up to 200 percent on some products from China to protect local businesses and prevent work shortages.
01:20Accessories, ceramics, electronics, footwear, cosmetics, and textiles have all been sold out.
01:32Authorities hope the increased tariffs will encourage Chinese manufacturers to invest inside of Indonesia.
01:39But there are fears it could provoke retaliation from Beijing.
01:44China is Indonesia's largest trading partner, with two-way trade exceeding US$127 billion last year.
01:53The government had previously tried to control Chinese influence by introducing regulations to tightly monitor raw imports, including food, electronics, and chemicals.
02:04But factory owners said those levies hindered the flow of materials needed for local production.
02:14The government has to maintain the supply chain so that it's safe.
02:20This is the most important thing. If it's not safe, the impact will be on production.
02:27Leaving the government grappling with finding the right balance between controlling the impact of Chinese imports on businesses and workers here, and encouraging the flow of local production.
02:38Dolphine Chen and Rosie Grenninger for Taiwan Plus.