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Corona Lockout Anticipation Protocol for the Textile Industry PDF Print E-mail
Written by Maizer   
Tuesday, 17 March 2020

Corona virus is spreading. For this reason, locking up the flow of people and goods in an area can be an option. The Indonesian Textile Association (API) states that the locking protocol for a region is very important for the textile and textile product (TPT) industry.

 

The association considers the lack of such protocols can make economic protection against the corona virus that the government has provided useless.

 

"Anticipation of the current government is only related to the economic impact, but the direction of the regional locking protocol is not yet available. The impact of the lack of protocol can have a negative impact on the growth of TPT industrial production, not just the garment industry," said API Secretary General Rizal Rakhman

 

Rizal said the government was advised to immediately change the focus of protection from the economy to the people. According to him, the fiscal incentives just announced by the government will not be effective.

 

Rizal believes that providing fiscal incentives will not reduce the level of the spread of Covid-19. According to him, the government should issue policies such as disinfecting manufacturers or investment locations every day, periodic checking of labor, and providing sanitation infrastructure.

 

Separately, the Chairperson of the Association of Herbal Medicine Entrepreneurs (GP Jamu) Ranny Dwi Pertiwi said that she had not yet gotten the production process protocol when locking an area.

 

Meanwhile, he continued, the manufacturer only has a stock of raw materials for production for the next 1-2 months.

 

"If it is not safe for 5-6 months. The association has provided input to the government. In essence, there is ease in the procurement of raw materials, the flow of goods, and production licensing," he said.

 

Ranny said the value chain that will most impact from the lack of the protocol is the logistics process from the manufacturer to the industrial warehouse and to the retailer.

 

Meanwhile, Deputy Chairperson of the Public Policy & Inter-Institutional Relations Association (Gapmmi) Rachmat Hidayat said food and beverage (mamin) manufacturers will try to extend the life of raw material stock. However, he continued, the same cannot be done with finished goods.

 

"If the [industry] guarantees the finished product is very short in its availability. In the palin producer warehouse [old] 1 month. If [longer than that] the business will not be profitable," he said.

 

Rachmat said that the age of raw material stock in industrial warehouses is still quite diverse. Rachmat counts that imported raw materials have a stock life of around 3-6 months, while raw materials from suppliers who are nearer are 1-3 months old in industrial warehouses.

 

 

 
		
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