The Ministry of Industry is preparing to provide incentives for labor-intensive sub-sectors that have experienced a decline in export demand, one of which is the textile and textile product (TPT) industry. The form of incentives will be adjusted according to needs. Minister of Industry Agus Gumiwang Kartasasmita said the textile industry is one of the sectors that is currently receiving special attention from the government. Currently, his party is still in the discussion stage regarding the incentive plan. "We pay attention to textiles to get assistance from the government. It can be in the form of incentives, that's definitely good. And we will talk about this, we will talk about it and we will continue to monitor it, we will continue to monitor how much pressure it has, the TBT sector," he said, when met after a Working Meeting (Raker) with Commission VII DPR RI, at the DPR RI building, Jakarta, Monday (12/6/2023).
However, Agus has not been able to confirm what form the incentives will be given. It can take many forms, ranging from taxes, cheap energy prices, import duties borne by the government, to raw material duties.
"So many options for us to do or provide incentives," he added.
According to him, incentives need not only be given to the textile industry, but also to other manufacturing sectors which have been affected by the decline in exports. Agus assessed that the provision of incentives was quite effective in helping to solve this problem.
On the other hand, currently the Purchasing Managers Index (PMI) in May 2023 is at 50.3 points. This figure still shows expansion, but the expansion is less than before, aka down 2.4 points from the previous month. Therefore, currently the Ministry of Industry will focus on saving the TPT industry and other sub-sectors.
"Down, but still expanding. Alhamdulillah, we have expanded for 18 consecutive months, of course in history. But yes, vigilance and caution as well as alarming must also be with us. Therefore, we are dissecting all affected sub-sectors. So All affected sub-sectors are of course also the category of sub-sectors that absorb a large workforce, one of which is textiles," he said.
As additional information, the provision of incentives by the Ministry of Industry was previously conveyed by Agus last week. It will provide reinforcement in the domestic market through the provision of incentives. The targeted sectors are labor-intensive industries in order to minimize layoffs.
"That's what we will prioritize, we will prioritize industries that have a high multiplier effect, let's call it labor-intensive for example. Those are sectors that we will look for incentives so as not to increase layoffs," said Agus, at the Ministry of Industry, Friday (9/9). 6/2023).
