Governor of Central Java (Central Java) Ganjar Pranowo revealed that hundreds of companies in Central Java were affected by the Covid-19 pandemic. This was stated by Ganjar in the Series III Webinar "Local Government Policies, Opportunities, Challenges, and Leadership in the Period and Post the Covid-19 Pandemic" which was broadcast on the official Youtube account of the Supreme Audit Agency (BPK).
"Well, the impact that we are trying to record since 2020 yesterday was that there were 440 garment/textile/meuble/barecore companies that were affected quite, quite seriously," he said. Even today, Ganjar said that some textile companies in Central Java are starting to have problems related to their relationship with banking. This is because some of them use foreign banks.
In order to avoid more troubled factories, Secretary General of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta revealed that factories have taken various ways to be effective in utilizing cashflow. One way is to negotiate with employees in matters of salary. This step was inevitably carried out due to limited funds.
"The number of factories that have difficulty paying installments is still below 10%, because there are adjustments that have been made, for example, they have reduced production again, so some employees' wages are negotiable. So some bank affairs can still pay interest, but this depends, the conditions are dynamic, if cash flow continue to be depressed, after a long time there can be more (factories find it difficult to pay installments)," said Redma.
Even though they can still pay interest, not a few are already having trouble paying the principal costs. Over time, it is not impossible that many people finally raise their hands to have difficulty paying any operational costs.
"Choices with tight cashflows have obligations to carry out. Now paying for electricity without paying for one month can be cut off, you can't even work. In the end, the bank is the back number, at least being able to pay interest is okay. Even though you usually pay interest and principal, but it takes a long time. "It takes a long time to pay interest, so it's natural to see the sequence like that, that's why the government needs to take a hand, otherwise there will be more problems," said Redma.
The government must be able to guarantee the domestic market to be controlled by the domestic industry itself. If not, then what has happened so far has continued, namely that most of the textile market has been devoured by imported textile goods. The government through Ministries and Institutions must move simultaneously, for example the two Directorate Generals under the Ministry of Finance, namely the Directorate General of Customs and Excise to the Directorate General of Taxes.
"Importers enter using wholesale imports, they are not subject to tax, they are free and do not pay taxes. Retailers in Tanah Abang import do not pay VAT, PKP (Taxable Entrepreneurs) use an ordinary KTP invoice, do not use NPWP (No. Taxpayer Principal), this must be sorted out," he said.
In addition, the government must also be introspective with the performance of import control. Many imported products enter the country due to lack of supervision. It is not impossible, supervision in the field also stagnates.
"Trade is also his job, he doesn't want to clean up imported and inappropriate goods, for example, baby clothes, don't use SNI, never checked on the market. Clothes don't use Indonesian labels. There are Chinese, Thai, Vietnamese labels, it's easy. This has never been done by the Ministry of Trade," he said.