The provision of incentives for imported textile raw material products is an obstacle for the domestic textile raw material industry to develop. Chairman of the Indonesian Filament Yarn and Fiber Association (APSYFI) Redma Gita Wirawasta said that the provision of incentives resulted in a large number of imported goods entering the country. This makes the absorption of local products has a narrow space in their own country. "Yes, this can hamper the domestic textile raw material industry, if this is still valid, it will not be in line between one policy and another, we have a safeguard policy for fabrics and threads, on the other hand the government provides import incentives," he said in a Market Review. IDXChanel, Friday (4/2/2022).
Gita said that incentives for imported products should not be more than incentives for the domestic textile industry. In addition, this will create strengthening from upstream to downstream.
"Once there are no more incentives, of course the demand for local fabrics for the garment industry will be even greater, because there is no incentive, there will be a strengthening of the supply chain from upstream to downstream," he continued.
Gita hopes that with climate improvement such as cutting income tax incentives in Article 22 of imports in a number of manufacturing sectors, it can strengthen local products, especially to meet the domestic market.
"With this kind of climate improvement, we hope that the local ones were still filled with imported goods, if we can fulfill the local ones, the next step is to replace local raw materials for export," Gita continued.
According to him, currently, to meet the needs of raw materials for the domestic market in the textile industry, domestic producers are still able to meet market demand.
"Imported products are like cloth, there are a few threads, but now it can be supplied domestically, indeed it can't be done completely, meaning it cannot fulfill all, especially markets whose market share is export, but for local we can already fulfill that," he concluded.
