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Indonesia'S Textile Industry Is Facing Serious Challenges.

2019/9/27 18:41:00 0

Indonesian TextileOverseas Textile

Indonesia's textile industry is facing severe challenges, prompting the Indonesian textile association (API) to call on President zokway. The latest case in the industry is that DuniatexGroup, one of Indonesia's largest textile companies, is unable to pay interest and loans on time.

In addition to the Duniatex problem, imported goods continue to invade the Indonesian market, so the industry is often regarded as sunset. Moreover, data from the Indonesian Stock Exchange (BEI) also show that the outflow of foreign capital from the Indonesian textile listed companies has remained unchanged since the beginning of this year.

In the relevant meeting minutes, API made at least 13 suggestions to win the response of President zokway.

First, the competitiveness of the textile and garment industry (TPT) will be enhanced by the power of gathering industry, so as to achieve an increase in exports and a decrease in imports.

Second, I hope to amend Labour Law No. thirteenth of 2003. The amendments mainly impose heavy burden on Indonesia's TPT industry and weaken the sound development of Indonesia's garment industry.

Third, conclude trade agreements with countries importing Indonesian products to enhance the penetration of Indonesian products in the export market.

Fourth, simplify the tax law. API only requires a value-added tax (VAT) for the final product. No value added tax is required for goods and services delivery from upstream to downstream.

Fifth, API provides investment experience in Ethiopia and India as a reference. Investments in these two countries will be rewarded with various incentives and accelerated access to the necessary permits.

Sixth, API hopes to reduce the energy cost of Indonesia's electricity and natural gas through relief or other mechanisms.

Seventh, the industry hopes that the industrial park in Central Java (CentralJava), East Java (EastJava) and West Java (WestJava) will be directly controlled by the president, so as to speed up the construction of Indonesian textile factories and ecosystems in a short time and maintain a sound Indonesian garment industry.

Eighth, API believes that we need to pay close attention and focus on the TPT industry. Therefore, it is suggested that the highest level officials (Secretary General) should be assigned to the TPT industry in the Ministry of industry, trade and labour.

Ninth, API has seen huge market opportunities at home and abroad in promoting the development of the industry. Therefore, it is necessary for the president to consider the necessity of formulating the "ready-made clothing act".

Tenth, it is necessary to amend the two provisions of Permendag64/2017 and Permendag18/2019, hoping to speed up the process of amending the above decrees and get the full support of the president.

Eleventh, it is necessary to speed up the revision of the EnvironmentalCandy (LH) act. This Law aggravates the burden of the TPT industry, because the wastewater management in the TPT industry is more difficult than other industries.

Twelfth, API supports the policy of strengthening vocational education. But higher vocational education also needs the attention of the government, so as not to have enough staff in the operator class.

Thirteenth, the TPT industry is ready to cooperate with small and medium sized enterprises (MSME) in order to work cooperatively between large enterprises and small and medium-sized enterprises. The TPT industry is also ready to support Indonesian brands, retailers and designers in developing fast fashion and modestfashion fashion in Indonesia. (Note: demure fashion refers to a garment that accords with the principles of Islamic belief. )

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