The Textile Branch of the Islamic Students Alumni Association (KAHMI Textile) is officially demanding full transparency regarding the Memorandum of Understanding (MOU) between Pan Brothers and Raven within the framework of the Agreement on Reciprocal Trade (ART). This demand, voiced by Executive Director Agus Riyanto, aims to ensure that the materials to be imported are strictly shredded rags and not secondhand finished clothing. Agus emphasized that the distinction is clearly defined in the Indonesian Customs Tariff Book, where worn clothing falls under HS 6309, while shredded materials or rags are classified under HS 6310. He argued that transparency is essential to prevent the domestic market from being flooded with used clothes under the guise of industrial raw materials, which would ultimately devastate small-scale local industries just so specific companies can secure a 0% export tariff.
The Ikatan Pengusaha Konveksi Berkarya (IPKB), a group representing small-scale garment manufacturers, has expressed grave concerns regarding the Reciprocal Trade Agreement (ART) between the Indonesian and United States governments. The controversy centers on the textile and textile products (TPT) sector, where two Memorandums of Understanding (MOU) were recently signed. These agreements involve the purchase of cotton and worn clothing as a prerequisite for Indonesian exporters to receive a 0% export tariff to the U.S. market.
The global textile industry is closely monitoring the latest report from the China Cotton Association (CCA), which recently released its national planting intention survey for 2026. Based on an investigation of 1,805 growers conducted in January 2026, China’s national intended cotton planting area is projected at 44.583 million mu. This figure indicates a remarkably stable outlook, showing only a slight year-on-year decrease of 0.5%. These data points provide a sense of certainty for global supply chains, as China remains a dominant producer of "white gold" that dictates international commodity price trends.
Indonesia and the United States have officially embarked on a historic chapter in their bilateral economic relationship following the signing of the Agreement on Reciprocal Trade (ART). This landmark pact breathes new life into the national textile and garment industry by opening market access with a 0 percent import tariff in the United States. Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated in a recent press conference that this move is a crucial strategy to bolster the penetration of Indonesia's flagship products into the world’s largest economy.
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