Indonesian Fiber Producers Reject Government Export Ban

The Indonesia artificial fiber manufacturers association (Apsyfi) refused to stop exports.

Apsyfi Secretary General Lemma said in May 7th that the association had heard that the Ministry of industry and small and medium enterprises wanted to ban the export of man-made fibres.

He pointed out that at present, the export of man-made fibres is only 80 thousand to 100 thousand tons per year, because domestic output has dropped by 10%.

Domestic 3 family fiber producers continue to expand production to supply the export market demand.

For example, Indo rayon artificial fiber company spent $200 million to expand the factory and increase production from the current annual output of 1 million 200 thousand tons to 1 million 500 thousand tons.

Earlier, Is, director general of the Ministry of industry and small and medium sized enterprises, pointed out that the government would stop the export of man-made fibres, and many domestic and small textile industries complained of man-made fibers.

Apsyfi instead urged the government to stop the export of rayon because its exports accounted for 40% of the total output.

She pointed out that the domestic man-made silk industry had been disproportionate or in short supply, because manufacturers had exported more products, so that the domestic industry only received half of the supply.

Despite the shortage of domestic demand, the two companies that are still increasing production, the SPV and Indo baltag company (IBR) in the South Pacific, have priority, she said.

She said, in principle, when there is a shortage in the country, raw materials must not be exported.