The government is preparing special incentives for industries that are vulnerable to layoffs, especially in the textile and textile product (TPT) industry located in Facilitated Areas, such as Bonded/KB Zones. Chairman of the Indonesian Textile Association (API), Jemmy Kartiwa Sastraatmaja, said that these incentives are important to protect the domestic market from invasion of imported goods. He said, to encourage the domestic textile industry to continue to survive, the government had promised to issue several regulations within two weeks. One of them will change or return inspection rules from Post-Border back to Border supervision, as well as imposing prohibitions and restrictions (lartas) for the majority of HS TPT Products.
"We hope that this regulation can be issued soon so that at least next year's Eid can be enjoyed by the National Textile Industry," said Jemmy, Sunday (8/10).
For your information, this incentive plan is intended to provide additional convenience for the textile industry in selling its products to the domestic market. Later incentives will be given to entrepreneurs who have an export orientation for selling their goods up to 50%.
Contacted separately, Chairman of the DPN Apindo Sectoral Policy Committee Chandra Wahjudi welcomed the incentive plan. According to him, the incentives provided will help domestic textile producers.
He revealed that most of the things that domestic producers complain about are the flood of imported goods which are sold without being subject to Value Added Tax (VAT). Meanwhile, local producers have been subject to Taxable Entrepreneurship (PKP).
"Many imported textile products in circulation are sold without VAT. "Many importers bring in goods from China and sell them in our market without VAT," said Chandra.
He added, because the average imported goods circulating on the market is not subject to VAT, it is difficult for local traders to compete with imported goods, because the prices are much cheaper.
Meanwhile, based on International Trade Center (ITC) data obtained from the General Custom Administration of China, China's TPT exports to Indonesia amounted to US$ 6.5 billion, while ITC data from BPS, TPT imports from China entering Indonesia were only around US$ 3.5 billion. billion.
"This means that there is a very significant gap and this must be investigated immediately to see if there are illegal imports, under invoicing or other things," he explained.
Therefore, Chandra believes that apart from providing incentives, proper implementation and supervision of existing policies is also very important for the government, so that domestic textile producers are able to survive.
