Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for International Relations, Shinta Kamdani, said that the manufacturing industry sector that has recovered from the impact of the Covid-19 pandemic is for example the food and beverage industry.
Other export-oriented industries have also begun to grow, for example the iron and steel industry, shoes, and textile and textile products, driven by export demand, which has started to recover strongly since the fourth quarter of 2020.
"However, not all companies in the manufacturing sector have recovered, because the level of utilization of production machines in the manufacturing sector has generally not returned to the level of utilization in 2019. The re-expansion of employment is also very limited, even in sectors that have recovered faster. Therefore, many business actors are still struggling to maintain business existence, maintain operations, and maintain employment, "said Shinta.
Therefore, he hopes that the workers' group is also rational and realistic about the current conditions. Shinta hopes that the labor group will be compassionate, share interests, and work together so that both workers and business actors can get out of the crisis due to the Covid-19 pandemic.
He asked workers and business actors to work together to increase productivity, so that the economy could recover quickly.
Protect from Import Flood
For TPT, the Secretary General of the Indonesian Textile Association (API) Rizal Tanzil said, the general utilization is probably already above 70%, some even higher. However, this does not apply to all sectors of the textile industry because of the wide variety, ranging from fibers, yarns, fabrics, weaving to garments. He said that the local garment utility that fulfills the need for sarongs is already 100%. Meanwhile, for garment that is export-oriented, it has overcapacity.
In general, the local garment industry is currently still weak in utilization due to pressure from the large number of imports flooding the market. Therefore, the textile industry is now proposing a safeguard for apparel with a price scheme rather than a percentage, in line with the proposal from the Ministry of Industry.
He gave an example that if you use the percentage scheme, imported branded clothes at a price of Rp. 2 million will only get an additional cost of Rp. 40 thousand.
"If it is Rp. 40 thousand, it has no effect. So, we ask for a specific import duty per HS per rupiah. Currently, the utility of local garments is below 60%, "said Rizal.
Meanwhile, in April 2020, Secretary General of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI) Redma Gita Wiraswasta once stated that 70% of textile companies were threatened with permanent closure due to the Covid-19 pandemic.
The textile industry players at that time were faced with the problem of limited cash flow, because a number of fees and fines had to be paid even though product sales fell at the beginning of the pandemic, so they were looking forward to stimulus support from the government.
Likewise, Gapmmi Chairman Adhi S Lukman said previously, the food and beverage industry slumped in the second quarter of 2020. This occurs due to the limited purchasing power of the lower middle segment.
In addition, he continued, in the middle-upper segment, consumer confidence is low, which needs to be overcome with the Covid-19 vaccination program.