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The Indonesian Synthetic Fiber Manufacturers Association (Apsyfi) rejected the government’s plan to stop exporting man-made fibers, and so far its export share has only accounted for 5% to 10% of national production.
Apsyfi Secretary General Lemar said on May 7 that the association has heard that the Ministry of Industry and the General Administration of Industry and Commerce wanted to prohibit the export of man-made fibers.
He pointed out that currently only about 80,000 to 100,000 tons of man-made fibers are exported each year, due to a 10% drop in domestic production. The three domestic man-made fiber producers continue to expand their production to meet the needs of the export market. For example, Indo-Ryong Synthetic Fiber Co., Ltd. spent US$200 million to expand its factories and increase its production capacity from the current annual production of 1.2 million tons to 1.5 million tons.
Prior to this, the Director of the Ministry of Industry and SME Director General Aiz pointed out that the government will stop the export of man-made fibers, due to complaints from many small and medium-sized textile industries in China, and there is a shortage of raw materials for man-made fibers. Insufficient domestic demand must end man-made fiber exports.
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 there was a disproportionate situation in the domestic rayon industry, or that supply was in short supply, as manufacturers exported more products, resulting in only half of domestic industry supply. She said that despite the short supply in the country, the two producers who are still increasing production, namely South Pacific Ivy Company (SPV) and Indo-Ura Trayong (IBR), are given priority in the export market. The two factories will begin to increase production at the end of 2013.
She said that in principle, when there is a shortage in the country, raw materials may not be exported.
Apsyfi Secretary General Lemar said on May 7 that the association has heard that the Ministry of Industry and the General Administration of Industry and Commerce wanted to prohibit the export of man-made fibers.
He pointed out that currently only about 80,000 to 100,000 tons of man-made fibers are exported each year, due to a 10% drop in domestic production. The three domestic man-made fiber producers continue to expand their production to meet the needs of the export market. For example, Indo-Ryong Synthetic Fiber Co., Ltd. spent US$200 million to expand its factories and increase its production capacity from the current annual production of 1.2 million tons to 1.5 million tons.
Prior to this, the Director of the Ministry of Industry and SME Director General Aiz pointed out that the government will stop the export of man-made fibers, due to complaints from many small and medium-sized textile industries in China, and there is a shortage of raw materials for man-made fibers. Insufficient domestic demand must end man-made fiber exports.
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 there was a disproportionate situation in the domestic rayon industry, or that supply was in short supply, as manufacturers exported more products, resulting in only half of domestic industry supply. She said that despite the short supply in the country, the two producers who are still increasing production, namely South Pacific Ivy Company (SPV) and Indo-Ura Trayong (IBR), are given priority in the export market. The two factories will begin to increase production at the end of 2013.
She said that in principle, when there is a shortage in the country, raw materials may not be exported.
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