The combination of nine textile and textile product industries (TPT) has invested Rp. 2 trillion in Java Island and Rp. 8.5 trillion in Riau Province to expand. Minister of Industry Agus Gumiwang Kartasasmita said this business expansion marked the optimism of textile industry investors in an effort to make Indonesia a production base to meet the needs of the domestic and export markets. The nine TPT companies that invested in were PT Dhanar Mas Concern, PT Embee Plumbon Textiles, PT Kewalram Indonesia, PT Pan Brothers Tbk., PT Anggana Kurnia Putra, PT Sipatex Putri Lestari, PT Bandung Djaja Textile, PT Sinar Para Taruna Textile and PT Asia Pacific Region.
"We hope that these companies can continue to exist and improve performance and become world-class textile players," said Agus in Bandung Regency, Thursday (12/23/2021).
The contribution of the textile industry to the gross domestic product (GDP) of the manufacturing sector was 6.08 percent in the third quarter of 2021. On a quarter-to-quarter basis, the textile industry grew 4.27 percent, although it still contracted -3.34 percent year-on-year.
Meanwhile, TPT exports in the January-October 2021 period also increased by 19 percent to US$10.52 billion, with the investment value also increasing by 12 percent to Rp5.06 trillion.
"This proves that the textile industry is not a sunset industry, it has even become a sunrise industry. I am optimistic that the national textile industry will grow and the acceleration is quite good if we look at the harmonization of upstream and downstream," he explained.
Investment in the textile industry is believed to continue to grow in the future. The realization of these investments includes the manufacture of fiber, yarn manufacture, fabric manufacture to the apparel industry. This is in line with the import substitution target of 35 percent by 2022.
Supporting the entry of investment in this sector, the government has issued a number of policies, both fiscal and non-fiscal.
These various policies are implemented through programs such as tax allowances and tax holidays, as well as the development of commodity balances and verification of industrial capabilities in order to improve the supply chain of raw materials and support the IKM sector through the construction of a material center.
The next program is import control and the imposition of trade remedies for the textile industry as a measure to safeguard the domestic market through the provision of import recommendations, the imposition of anti-dumping duties (BMAD) and import duties on security measures (BMTP) or safeguards.
"We have also issued IOMKI policies, competitive gas prices, encouraging the implementation of a circular economy and sustainability in the textile industry, as well as increasing human resource competencies," said Agus.
