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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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APSyFI Asks for More Energy Incentives PDF Print E-mail
Monday, 06 April 2020

The Association of Filament and Filament Yarn Producers (APSyFI) stated that the reduction in electricity costs from PT Perusahaan Listrik Negara (Persero) reduced the burden of manufacturing costs due to reduced markets.

 

APSyFI Secretary General Redma Wirawasta said electricity consumption in the upstream textile and textile products industry was only 6.6-6.9 percent of the total production cost. Redma assessed that the investment will help manufacturers who are in a production transition during the era of market depreciation.

 

"[The impact] should have been very big for us upstream. Upstream uses a lot of energy. [The cost] of our energy from [total] cost is around 22-23 percent. 70 percent uses gas, 30 percent electricity from PLN," he explained.

 

However, Redma assessed that the manufacturers still need other incentives from PLN, such as the temporary suspension of electricity bills, temporary removal of peak load calculations, midnight discounts, and postponement of payment of electricity tariffs.

 

Redma said that there are currently some TPT upstream manufacturers that cannot start their engines for 40 hours. With the inclusion of PLN as a beneficiary, Redma hopes that this can be transmitted on electricity tariffs for the industry.

 

Regarding the calculation of peak load, Redma assessed that the calculation factor is no longer relevant to current conditions. The reason, according to him, now PLN electricity supply has been excessive.

 

Meanwhile, APSyFI and the Textile Association (API) had previously requested a 50 percent delay in payment of electricity tariffs for 6 months with a guaranteed 12-month current account repayment guarantee. In addition, a 50 percent discount on electricity tariffs for use at 22.00-06.00.

 

Shrinkage Market

 

Redma recorded that the TPT upstream industrial market is now shrinking by around 60-70 percent. Therefore, he continued, the association directs manufacturers to shift production lines of commodity raw materials generally for downstream manufacturers into raw materials for the production of personal protective equipment (PPE) and masks.

 

According to him, until now there have been 30 percent of manufacturers that divert their production lines into raw materials for PPE production and masks. Redma assessed that the transfer makes the average utilization of TPT upstream manufacturers can be maintained at around 40 percent.

 

"But, if the factory [which is still alive] is in the range of 60-70 percent. The level of 40 percent is calculated by the manufacturer which is already dead. This is for fiber and yarn factories," he explained.

 

 

 
		

		
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