Minister Industry Agus Gumiwang Kartasasmita asked the national industries to find supply of raw materials from other countries to substitute the supply from China, as the drop of raw material from this country might be longer due to the effect of coronavirus (COVID-19) outbreak.
The minister said that several industries were hampered by the impact of the coronavirus outbreak.
Among them are the textile industry and textile products. These industries whose the supplies of raw materials partly rely on China are starting to stop their operations.
“Of course, we must be prepared. We have to anticipate. If the recovery of this corona does not meet our expectations, this will certainly disrupt the availability of raw materials,” Agus told reporters yesterday (Wednesday, February 26).
“As a result, the national industry must look for sources of raw materials from other countries. Of course, this will affect the price and will affect the competitiveness of the industry itself, ” he stated.
He said, the Ministry of Trade would tie up cooperation with some national industry associations to anticipate the impact of the novel coronavirus (COVID-19) outbreak on domestic manufacturing which has been predicted to be prolonged.
“As Industry Minister, I must be prepared to cooperate with the associations for the worst possibility if the COVID-19 cannot be overcome,” he said.
Agus said China is Indonesia’s most important trading partner where 25 percent to 30 percent of its trade balance is obtained from trading with the country.
As reported earlier, Indonesia total export to China fell 12.07% in January, significantly contributing to the overall Indonesia’s export drop and a bigger trade deficit during the month, according to Central Bureau of Statistics BPS.
General Secretary of the Indonesian Fiber and Filament Association (APSyFI) Redma Gita Wirawasta said that the industry of textile and related textile product (TPT) will face a significant drop in export and import due to this case (coronavirus).
“Surely, this will disturb our industry production that will finally disturb our export,” he said.