Raw material crisis imperils Indonesia polyester units: Reports

13 Feb '24

1 min read

Pic: Adobe Stock

Insights

The Association of Indonesian Spun and Filament Yarn Producers reportedly warned many Indonesian polyester factories may halt production due to challenges in sourcing raw materials.
Farhan Aqil of APSyFI reportedly claimed the restrictions are linked to Trade Ministerial Regulation No. 36/2023.
Polyester is crucial for textiles, automotive, and packaging.

According to the Association of Indonesian Spun and Filament Yarn Producers (APSyFI), numerous polyester factories in the country are facing imminent threat of halting production, faced with substantial challenges encountered by them in procuring essential raw materials.

The primary hindrance reportedly stems from the government’s stringent import restrictions, exacerbating the scarcity of vital supplies for the production process.

Reports added the supplying countries of mono-ethylene glycol (MEG) to Indonesia have paused shipments awaiting government permit clarification.

As firms grapple with these constraints, the continuity of operations within the polyester industry hangs in the balance.

Speaking to the media, APSyFI secretary Farhan Aqil reportedly maintained the restrictions were linked to the Trade Ministerial Regulation (Permendag) No. 36/2023.

Polyester, a widely used synthetic fibre, is integral to various industries, including textiles, automotive, and packaging.

However, the inability of polyester factories to access an adequate supply of raw materials jeopardises not only their production capabilities but also the broader supply chain and economy, reports claimed further.

Fibre2Fashion News Desk (DR)

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