Advertisement Advertisement Advertisement
 
 
Lost Password?
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.


	
Product
Find millions of selling leads from around the world,now!
Featured Company
TIFICO FIBER INDONESIA PT (PT. TIFICO)
SUSILIA INDAH SYNTHETIC FIBERS INDUSTRIES, PT (SULINDAFIN)
Pollyfin Canggih, PT
PT. TESTEX TESTING AND CERTIFICATION

Data & Statistic
  INDONESIA' EXPORTS / IMPORTS OF TEXTILE COMMODITIES JAN-MAR 2019
  INDONESIA' EXPORTS / IMPORTS OF TEXTILE COMMODITIES

Special Feature
  Texprocess presents ‘Digital Textile Micro Factory’ for the first time
Home arrow Latest News arrow Without Stimulus in the Middle of the Pandemic, 70% of TPT Industry will Go Bankrupt


				
			
			
Without Stimulus in the Middle of the Pandemic, 70% of TPT Industry will Go Bankrupt PDF Print E-mail
Written by Maizer   
Thursday, 30 April 2020

The COVID-19 pandemic has forced around 80 percent of textile and textile product (TPT) companies to stop all activities. If conditions continue and they don't get incentives, it is certain that around 70 percent of the industry will close.

 

Secretary General of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI), Redma Gita Wirawasta explained, the TPT industry is currently facing cash flow problems.

 

 "Because even though the production stops, they must still pay fines from PLN and PGN because their electricity and gas usage is below the minimum requirements, including BPJS payments for those whose status is laid off. On the other hand there is no income from product sales," Redma explained.

 

At the end of March, APSyFI and the Indonesian Textile Association (API) had conveyed to the Ministries and Government Agencies the related relaxation needed for the TPT sector to participate in the recovery of the national economic sector after COVID-19.

 

Unfortunately, until now there has been no significant progress from the proposal submitted. Relaxation policies requested include the elimination of the minimum usage fines for electricity and gas. Redma explained, the demand for the textile sector was very reasonable because the decline in electricity and gas usage was not due to the failure of the company in carrying out its operations, but because of a pandemic.

 

"But in reality PLN and PGN do not consider this situation as an extraordinary condition and still apply fines," he said.

 

The same thing happened in the banking sector. The Financial Services Authority has issued POJK 11/2020 which provides the flexibility of the banking sector to relax creditors who have difficulty meeting their obligations. However, until now the banks have not provided that relaxation. The banking sector still regards this as the company's inability to fulfill its obligations as an ordinary business failure, not because of a national disaster.

 

"If banks cannot provide additional credit for working capital, at least we will be given relief in the form of rescheduling principal and interest payments. Do not let mass non-performing loans occur in the TPT sector, "said Redma.

 

It again highlighted trade policies that have not been responsive in encouraging the national textile industry to resume operations after COVID-19.

 

"As of April 20, 2020 yesterday, Turkey has announced the safeguard of all products in the textile sector with an additional import duty of up to 35 percent, this is done to secure the market for the domestic industry so that it can resume operations after COVID-19 in the context of economic recovery," he explained.

 

"Well, this is our trade policy that is still pro-import, moreover its implementation, making imported products very easy to enter the domestic market. Even though we really need this domestic market, especially exports are predicted to recover even longer "he continued. For this reason, he requested the government through the relevant ministries to intervene immediately.

 

"We understand that the government will have limited resources to reactivate the post-COVID-19 economy, so we only ask for policies that do not drain government pockets," he said.

 

 
		
More Latest News & Recent
3 Batam Customs Officials Become Suspects of Textile Import Case
Denim Show announces new dates for New Delhi and Mumbai editions
Government Revokes Prohibition of APD Export
Strategy to Restore the Economy After Corona
Strategic transformation underway at Loepfe
Latest Selling Leads
kain twill kembang 2019-03-26
Printmate 2017-10-27
Label 2017-04-07
Canvas Fabric 2016-04-29
POST   |   MORE
Latest Buying Leads
kain katun jepang 2019-03-26
Cari Kain 2019-03-26
Twill Pants 2017-04-07
All Finish Fabric 2016-03-21
POST   |   MORE
  EXPERT PERSPECTIVE
Export Perspective of Textiles Industry
Suharno
IKATSI Chairman
Export Perspective of Textiles Industry
Read more...
Advertisement
Advertisement
Advertisement
 
 | Home | About Us | Contact Us | Organization Link | Our Publication | Advertisement | Sitemap | CSR | Term & Condition  | 
Copyright © 2008, All rights reserved by CV. Gaindo Pratama Indonesia.