Business actors who are members of the Association of Indonesian Filament Fiber and Yarn Producers (APSyFI) said that currently member companies are increasingly having difficulty making credit payments to banks.
This is because it has been difficult for this industry to survive in the midst of a pandemic since last year, coupled with the conditions this year where the government implemented an Emergency Community Activity Restriction (PPKM) from July 3-20 and extended it until July 25.
Secretary General of APSyFI Redma Gita Wirawasta said that amid the current tough conditions in the textile industry and its derivatives, the association hopes that banks can provide relaxation for this sector.
"Before PPKM, several companies had difficulty paying bank installments because they had not recovered. With this PPKM, more companies will have difficulty paying installments. Therefore, we propose relaxation in the banking sector for the textile and textile products industry," said Redma.
He revealed that this condition occurred because the upstream textile sector had currently experienced a 15% decrease in utilization and 25% in the downstream sector.
This decrease in utilization occurred because of the social restrictions that were applied, only essential and critical sectors were allowed to operate.
"Which is not both full stop. In upstream, most of them enter the essential sector and some are critical," he explained.
Not fully operating has made companies in the textile industry start to experience difficulties with capital due to minimal income even though costs continue to run.
Thus, with the extension of the Emergency PPKM, the conditions for these companies will be even more difficult.
"Even some companies have started to calculate the option to reduce employees," he said.
President Joko Widodo said the extension of the Emergency PPKM would be implemented until July 25, 2021.
The President explained that the government will open this Emergency PPKM on July 26 in stages if the trend of cases continues to decline.