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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 Textile Industry Starts to Fall


				
			
			
Textile Industry Starts to Fall PDF Print E-mail
Written by Maizer   
Wednesday, 29 April 2020

The decline of the textile industry in 2020 was the worst compared to the monetary crisis in 1998 ago. At present textile production has fallen dramatically to 70 percent. As a result, industry players large bounds each month.

 


 

The unrest was conveyed by textile entrepreneurs who are members of the Indonesian Textile Association (API). "This year there is no hope for us. The market has been quiet from afar due to the Covid-19 outbreak, "said API Executive Secretary, Rizal Rakhman

 

"This year worse than 1998. Maybe we will be finished after Lebaran. Only the very few survived, "he said.

 

Such conditions, he continued, the textile industry has Termination of Work (FLE) and laid off workers to 1.98 million employees. This number reaches 70 percent of the total workforce in the textile industry, which amounts to around 2.7 million people.

 

"There's no more income anymore because I can't sell goods. While obligations continue to run such as paying for electricity, labor, BPJS, and bank interest. This condition is very severe, "he said.

 

Nevertheless, he continued, there is still a textile industry that survives. This is because it is helped by the transition to the production of masks and Personal Protective Equipment (PPE). "Out of 2,500 Indonesian medium and large garment industries, perhaps no more than 30 large companies can produce PPE," he said.

 

The transition was not enough to save the textile industry. This means that nationally, no more than 3 percent can produce batteries and PPE. "So nationally it is not significant to boost the textile industry. Yes, only a few can produce, "he said.

 

Therefore, he urged the government to provide stimulus to the garment industry. Among these are relief on electricity bills and bank loans. "We ask for the removal of the minimum account or the 40-hour clock load. In addition, we ask for relaxation of interest payments for industry. The Financial Services Authority (OJK) and Bank Indonesia (BI) provide stimulus to banks so that the garment industry can get relaxation for interest payments, "he explained.

 

Related to the stimulus given by the government regarding the relaxation of Income Tax (PPh), according to him, it had no effect and could not save the garment industry. "We do not have income, what is taxable. So the stimulus for the manufacturing and textile industries is not effective, "he said.

 

Separately, economist from the Institute for Development of Economics and Finance (INDEF) Ariyo Irhamna said the homecoming ban issued by the government was good enough to break the chain of distribution of corona. "Prohibition of going home will reduce household consumption, increase poverty in both cities and villages. However, it does not matter if we can prevent Covid-19 from spreading, "he told Fajar.

 

According to him, not all textile industries suffered losses. There are several garment industries that make a profit amid the spread of this corona. "For a textile industry that will survive that is able to adapt to producing PPE and masks massively. Because, PPE and mask needs are very high, "he said.

 

Meanwhile, previously Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the ban on Lebaran 2020 would affect one of them on the garment and textile industry. That's because people's purchasing power will drop dramatically. "This year's Eid will be different from the previous Eid," he said.

 
		
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