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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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70 Percent of National Textile Companies Threatened Permanently Closed Because of Corona PDF Print E-mail
Written by Maizer   
Monday, 11 May 2020

The textile and textile product (TPT) industry players are currently waiting for stimulus support from the government in the midst of difficult conditions due to the corona pandemic (covid-19).

 

At present around 70 percent of the total number of TPT companies is estimated to be permanently closed if there is no clear stimulus stimulus from the government.

 

The Secretary General of the Indonesian Filament and Fiber Yarn Producers Association (APSyFI), Redma Gita Entrepreneur, said that the TPT industry is currently facing the problem of limited cash flow.

 

Because, a number of costs and fines must be paid. Meanwhile, income from product sales is very limited in the midst of a pandemic.

 

"Even though they stop production, they must continue to 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," Redma said in a written statement.

 

According to Redma, actually APSyFI and the Indonesian Textile Association (API) had been communicating with the ministries and government institutions to convey the forms of relaxation needed by the textile industry players at the end of March 2020.

 

It is hoped that the TPT sector will be able to recover soon when the corona pandemic ends if the expected relaxation can be realized.

 

One form of relaxation is expected to include the elimination of the minimum usage fines for electricity and gas.

 

According to Redma, the use of gas and electricity that fell in the middle of the pandemic is a natural thing, given that this is caused by external factors, not driven by the company's operational failure.

 

However, such conditions are not seen as extraordinary conditions by PLN and PGN so that the provision of fines still occurs.

 

Reporting from the Tribune, Similar things are also found in the banking sector. As is known, the Financial Services Authority (OJK) has actually issued POJK 11/2020 which provides flexibility for the banking sector to relax the obligations of creditors who have difficulty meeting obligations.

 

But, such relaxation is not found.

 

In contrast, the banking sector tends to still consider the inability of companies to meet obligations as a failure of ordinary business, rather than being caused by a national disaster.

 

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

 

On the other hand, the stimulus stimulus in the form of relaxation that was not given was also exacerbated by trade policies that were considered pro-import and not in favor of the domestic textile industry players.

 

According to Redma, this is quite different when compared to other trade policies such as Turkey which plans to impose safeguards with an additional import duty of up to 35% for all products in the TPT sector.

 

Seeing such conditions, Redma hopes the government can immediately intervene to help the textile industry players who are struggling.

 

To note, so far about 80% of TPT companies are known to have stopped all activities temporarily due to sluggish local and export market conditions and the implementation of Large-Scale Social Restrictions (PSBB).

 

Along with this, the temporary API data noted that around 1.8 million workers in the TPT sector had been temporarily laid off. Some of them even recorded having experienced termination of employment.

 

 
		
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