The Indonesian Textile Association (API) opened its voice regarding the news that the government is currently preparing incentives for the textile and textile product (TPT) industry. Chairman Jemmy Kartiwa Sastraatmadja said that his party was not yet aware of the news that would involve the industry he was managing. "What's the incentive?" asked Jemmy on Monday (15/5/2023). Even so, Jemmy said that his party hopes that the government can solve the current problems of the TPT industry, seriously. Meanwhile, according to him, the current problem facing the textile industry is the vacancy in the domestic market that can be filled by domestic textile products. This is because since the second quarter of 2022, his party has no longer been able to enjoy the export market as usual, the impact of the economic instability of export destination countries.

"TPT needs a market, now exports are weak, we really need the domestic market," he added.

Previously, in 2021 and 2022 the Ministry of Industry (Kemenperin) held a machine/equipment restructuring program that focused on the fabric perfecting and fabric printing industries which was attended by 27 companies.

This year, the Ministry of Industry is again holding this program and targeting the participation of 13 companies with a total budget of IDR 4.7 billion. With this budget, a discounted price of 10 percent of the total investment in imported machinery/equipment will be made, or 25 percent for domestically produced machines/equipment.

Companies can submit applications from March 24, 2023 to June 30, 2023 in accordance with the Regulation of the Director General of the Pharmaceutical Chemical Industry and Textiles No. 11 of 2023 concerning Guidelines for Implementing the Machinery and/or Equipment Restructuring Program in the Fabric Finishing Industry and Fabric Printing Industry for the 2023 Fiscal Year.

Machinery or equipment that can be included in the program must meet the purchase and installation period between 1 June 2022 and 30 June 2023 and have been installed at the location according to the industrial permit they have. The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the government would provide incentives for the domestic industry.

"The government is preparing various incentives to maintain the economy in the textile sector and its products," said Luhut, quoted from a release, Wednesday (10/5/2023).

He said, his party saw a large market potential in the textile industry along with increasing economic growth in Indonesia, the purchasing power of the people and the middle class segment also grew significantly.