THE IMPACT OF THE MANDATORY APPLICATION OF INDONESIAN NATIONAL STANDARDS (SNI) AND THE INTERNATIONAL ORGANIZATION FOR STANDARIZATION (ISO) OF TEXTILE AND TEXTILE PRODUCTS ON THE IMPORT EXPORT OF TEXTILE AND TEXTILE PRODUCTS IN INDONESIA

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Ribka Intan Putri Sinaga, Deasy Lastya Sari, Helen Storyna , Bachtiar Simamora

Abstract

This research discusses the effect of the mandatory application of SNI and ISO for Textiles and Textile Products
(TPT) on the export and import of Indonesian TPT with data for the period 2010-2019 using the Econometric Model Analysis
(Fixed Effect Model) and the OLS Method using multiple regression analysis. The variables used are the total volume of
imported TPT and the total volume of TPT exports. The independent variables are real GDP, real exchange rate and the
dummy of mandatory application of SNI and ISO for Textiles and Textile Products to Indonesian textile and textile products
and imports. The results of this study indicate that there is a positive influence between the mandatory application of SNI and
ISO for Textiles and Textile Products on Indonesian TPT Exports and Imports, and provides an analysis of the impact of
Indonesian government policies in making regulations on the textile and textile product industry in Indonesia. Economic
policies are still needed, such as economic incentives, such as lowering bank interest rates for investment and a relatively
stable Rp/US$ exchange rate that will help textile producers in calculating raw material costs and profits.

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