Chairperson of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmadja said that the recovery of the textile industry will very much depend on the acceleration and efficiency of the vaccination program. This program is considered to be able to provide certainty for the return of economic activity compared to providing stimulus that is not necessarily on target.
"Therefore, we hope that vaccination can be accelerated. This is why the idea of an independent vaccine was conveyed by the business world, if herd immunity is achieved then economic improvements can run. So it's not just a monetary stimulus, "said Jemmy.
The government itself is targeting 70 percent of Indonesia's population to be completely vaccinated by the end of 2021 to achieve herd immunity.
In the first batch of vaccinations starting in January 2021, 1.3 million health workers became the first group to receive the vaccine and then public service officers followed 17.2 million people.
Jemmy said manufacturing sector workers were not among the earliest vaccinated groups. Therefore, efforts to speed up vaccination through a business participation scheme are now being discussed.
In addition to the vaccinations which are expected to be carried out more quickly, Jemmy hopes for an exemption from Article 25 Corporate Income Tax (Pph) in order to improve the company's cash flow. This tax is calculated from the gross income of an entity or institution that is paid in installments during the current tax period.
Separately, Center of Reform on Economics (CORE) Economist Mohammad Faisal said that accelerating vaccination could indeed be a solution to the fundamental problem of low consumer confidence during a pandemic.
He stated that the purchasing power of the middle and upper class groups actually still exists and can only be raised if conditions are safer. In this case, the success of vaccination and handling of the pandemic will play an important role.
"This consumption problem is fundamental and is felt by all sectors. Vaccination is one way to encourage consumption. I see if it works, the hope is that the community will have more confidence in their activities and will automatically affect the upstream side, "he said.
He is of the opinion that business operations cannot rely solely on stimulus in the form of tax incentives. More than that, he said the business world needed to get relief from operational expenses, including in the cost of labor, energy, and in the procurement of raw materials.
"In this case, the government must make a priority scale, whichever sector is most affected. "Salary subsidies cannot be beaten equally to workers with wages below Rp. 5 million because they could be wrong targets," he said.