The absence of the textile sector in the income tax incentive (PPh) policy of article 22 imports was welcomed by industry players. Based on the Regulation of the Minister of Finance No. 3/2022, the textile and footwear industry is not included in the sector that gets an extension of the PPh article 22 import incentives and PPh article 25. The Indonesian Filament Fiber and Yarn Association (APSyFI) stated that the policy could support strengthening the structure of the textile industry from upstream to downstream. Secretary General of APSyFI, Redma Gita Wirawasta, said that the procurement of imports no longer received incentives, it would provide an opportunity for the domestic textile raw material industry to grow.

"We strongly agree that the incentives will be abolished [for the textile industry. We already have good upstream-downstream integration. Do not let imports be given incentives, which will eventually damage the order of upstream-downstream integration," said Redma, Wednesday (2/2/2022). .

In addition, the procurement of raw materials from abroad has actually been regulated with facilities for easy import for export destinations (KITE) and bonded zones. "So we are not worried that even if the incentives are revoked, exports will not be disrupted," he continued.

However, Redma said with cash flow conditions that have not yet fully recovered, the industry still needs Article 25 income tax incentives. The textile sector is not the recipient of these incentives.

Meanwhile, Executive Director of the Indonesian Footwear Association (Aprisindo) Firman Bakrie said that the recovery in the footwear industry was uneven, especially for industrial companies with a domestic orientation.

According to Firman, the government still has to pay attention to the allocation of incentives. "I think there should still be attention for the footwear industry, especially for groups who are still affected by Covid-19," said Firman.

On the other hand, export-oriented industrial companies have been able to grow with an abundance of orders from other countries, not the case with players with the main focus on the domestic market, which relies heavily on handling the pandemic. Moreover, there is a threat of a spike in Omicron strains that risks hampering recovery.

"We were hoping that the market would return to normal, but it turned out to be a hurricane Omicron. Of course we are not doing well, so if we were excluded [from the incentive recipient sector], it would be a bit strange," said Firman.