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APSyFI: The national textile industry is headed for a trade deficit, 2018 exports grow 1% and imports grow 14% (yoy).--IKATSI: The growth of the national textile industry is still hampered by floods of imports, Indonesia needs a clothing security law.


	
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Textile Association Ask for Electricity Pay Installments PDF Print E-mail
Written by Maizer   
Friday, 20 March 2020

The textile industry and textile products industry (TPT) asked the government to facilitate the postponement of electricity payments to maintain industrial cash flow amid the pressure of the corona virus outbreak. This pandemic is considered to threaten the existence of the industry with a significant decrease in demand.

 

Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa said, one of the interventions expected was to postpone the payment of 50 percent of PLN's electricity bills for the next six months or the period April to September. "With the guarantee of installments in the form of demand deposits backwards for 12 months," he said.

 

Before Covid-19, the TPT industry had improved with the government safeguard policy. But, Jemmy said, the trend of demand for TPT products began to show a downward trend since Covid-19 entered Indonesia, which declined very sharply over the past 10 days.

 

A number of current request commitments were postponed, and even canceled. It's just that, Jemmy can not mention the intended reduction rate. He hopes that the government will immediately intervene to help industrial cash flow which will lead to job security for the 3 million workers in the TPT industry.

 

"We hope the government can consider maintaining the operation of the textile industry and avoiding a wave of layoffs due to economic contraction due to Covid-19," he said.

 

In addition to electricity costs, Jemmy added, the industry also hopes the government accelerates the implementation of a reduction in gas prices to US $ 6 per mmbtu starting April 2020. These two components are known to contribute greatly to the cost of TPT production.

 

Still in the energy sector, TPT entrepreneurs are asking for a 50 percent discount on idle time load rates, from 10:00 to 06:00 West Indonesia Time by 50 percent.

 

In the industrial sector, Jemmy explained, the relaxation needed by TPT entrepreneurs in emergency conditions at the moment is tariff protection in the form of safeguards for apparel products. "This is a continuation of the harmonization of upstream to downstream tariffs intended for downstream TPT and IKM (Small and Medium Industry) production," he said.

 

Tightening of verification in granting TPT Import Approval was also requested by the industry. Jemmy hopes that the government will be selective in granting licenses for imported products of industrial raw materials with the consideration of meeting domestic production capacity first.

 

Note also given to the environmental sector. Jemmy explained that he asked the government to immediately revoke the Fly Ash & Bottom Ash (FABA) regulation from the hazardous and toxic waste (B3) category. Because, other countries do not do it and instead utilize FABA as raw material for brick making and asphalting roads.

 

Jemmy also conveyed the revision of the tightening of liquid waste quality standards. According to him, many countries have implemented it, but not as strict as Indonesia. "This is an additional burden on the competitiveness of domestic producers," he said.

 
		
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