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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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Home arrow Latest News arrow TPT Industry Asks for Relief


				
			
			
TPT Industry Asks for Relief PDF Print E-mail
Written by Maizer   
Thursday, 26 March 2020

Businesses in the textile and textile product industry (TPT) ask the government to provide incentives to avoid business downturn. Although the government did not apply a lockdown in responding to the latest type of Covid-19 corona virus epidemic, the TPT sector was very indirectly affected due to the decline in public demand.

 

The Secretary General of the Indonesian Association of Filament Fiber and Yarn Producers (Apsyfi), Redma Gita W, asked the government to provide a 50 percent delay in payment of electricity bills for PT Perusahaan Listrik Negara (Persero) for the next six months or April-September with a guarantee of installments in the form of reverse demand deposits during 12 months.

 

Redma revealed that the current condition was far beyond expectations. Therefore, support is needed, in the form of intervention from the government so that this situation can be recovered. "We need intervention in the energy sector, provide relief of 50 percent delay in payment of electricity bills. Let me for the next six months, "he said in his press conference in Jakarta, earlier this week.

 

He explained, the TPT sector houses around three million workers and more than 10 million direct dependents in Indonesia. According to him, the state of emergency that threatened the existence of the industry was caused by the rapid weakening of consumption in the midst of the Covid-19 pandemic even though the government did not decide on a total isolation of the area (lockdown).

 

He added that the effect of the government's rapid steps to improve the TPT sector through curative measures in the form of approval of safeguard applications apparently did not last long. This is because the Covid19 issue has resulted in a sharp decline in demand again. Some current request commitments are delayed or even canceled.

 

"This phenomenon that occurs simultaneously and on a large scale will have an unsatisfactory impact on the extreme utilization of industry which will simultaneously have an impact on productivity and the economic cycle of the TPT Industry," he explained.

 

In addition to asking for leeway for payment of tariffs, the industry also asks for a 50 percent discount on electricity prices for idle load times at 10: 00–6: 00. Not only that, the decline in gas prices by 6 US dollars per MMBTU which was originally due to start April 1 is also requested to be accelerated.

 

Application of "Safeguard"

 

Secretary General of the Indonesian Textile Association (API), Rizal Rakhman, added that besides the energy sector relief, the TPT industry also requested other relaxation, namely in the form of tariff protection in the form of safeguards for apparel products as an effort to further harmonize tariffs from upstream to downstream for the downstream TPT producers and small and medium industries (IKM).

 

"This is because there are so many petitioners who must be collected in a very short time. Therefore, safeguards for apparel products may only be initiated by the government, "explained Rizal.

 

In addition, Rizal asked the government to tighten verification of TPT import approval so that the licenses granted were only really intended as industrial raw materials. This was to meet the domestic production capacity first.

 

"This relaxation proposal should be considered in order to avoid a wave of layoffs (layoffs) as a result of the economic contraction that occurred due to the spread of Covid-19," concluded Rizal.

 

 
		
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