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Minister of Finance Sri Mulyani Indrawati said that the increase in global interest rates and a weakening economy would affect exports in a number of developing countries, including Indonesia.Sri Mulyani revealed that aggressive interest rate increases in developed countries must be carried out to suppress rising demand and trigger inflation. "We will see this phenomenon, the reason is that in developed countries, with aggressive interest rate hikes they want to control demand," he explained at the Press Conference on Our State Budget, quoted Friday (25/11/2022).

With this controlled demand, Sri Mulyani sees that the demand for export goods, especially textiles and textile products, footwear and electronics will be disrupted. In fact, these types of goods usually increase at the end of the year, ahead of Christmas and New Year.

According to him, this phenomenon is not only felt by Indonesia. The decline in exports of textiles, footwear and electronics was also felt by Vietnam and Bangladesh.

In Indonesia alone, the growth of the textile and footwear industry is still good, namely 8.09% and 13.4% respectively until the third quarter of this year.

"But you have to be vigilant, if growth is still good now, where is the trend going, the last quarter has changed direction. We have to look at the data. We will monitor companies, import raw materials, export, and how to pay taxes for their PPh21, VAT, this refund describes whether the company is working or not or we will see PPh," he said.

"We will be aware of the steps that must be prepared," he added.

Sri Mulyani herself admits that she is confused about the conditions in the textile and textile products industry. The reason is, seeing the growth in employee taxes or PPh 21 until October 2022, which still shows a positive growth trend.

During January-October 2022, PPh 21 revenues grew 21%, higher than growth in the same period last year which only grew 2.7%.

"This is employee income tax and indeed this is very clumsy when compared to some of the layoff news," explained Sri Mulyani.

This means, said Sri Mulyani, that until October 2022 there are still employees who work and receive income rights, aka their salary, which is then deducted by the company's taxes.

Even looking at it in detail, the growth in PPh revenues until October and compared to the first quarter to the third quarter of 2022, still shows a double-digit growth trend.

"Growth in October was still 17.4%, in the first quarter of 2022 it grew 18%, in the second quarter it grew 19.8%, and in the third quarter it grew 26.1%. This means that employee tax growth is still positive," he said.