Stringent government import restrictions are exacerbating the scarcity of mono-ethylene glycol (MEG), a crucial component in Indonesia’s polyester industry, leading to numerous factories across the country.
Farhan Ail, Secretary, The Association of Indonesian Spun and Filament Yarn Producers (APSyFI), says, linked to the Trade Ministerial Regulation No. 36/2023, the restrictions are a having a devastating impact on production and jobs. The factory closures may the broader supply chain across the country besides impacting the national economy, warn experts.
The issue is jeopardising not only production but also the livelihoods of countless workers employed in the sector, say industry stakeholders. They urge the government to reconsider the import restrictions and find solutions to ensure a stable supply of raw materials.
