The government has decided to postpone raising the non-subsidized basic electricity tariff (TDL) until at least the third quarter of 2022 considering the national economic recovery. General Chairperson of the Indonesian Filament Fiber and Yarn Association (APSyFI) Redma Gita Wirawasta said that despite improving economic conditions, there is still pressure on the demand side due to rising prices. If the TDL increase must be carried out, he underlined improving the quality and security of electricity supply, especially for the industrial sector.

"As long as the reason is accepted and can improve quality, secure supply, that's okay, we still accept it," said Redma, recently.

The increase in the value added tax (VAT) rate which came into effect in April 2022 as well as the bottleneck in export performance due to unresolved logistics problems are industry challenges this year.

Therefore, the delay in the increase in TDL has provided additional breath for the textile industry. However, the pressure does not mean subside.

"In exports there are still obstacles, at domestic inflation is the obstacle. Inevitably we will inflation if the world [condition] is like this. So how far is the electricity increase [the impact], because we will definitely pass through to consumers," he explained.

In the midst of inflationary pressures due to rising raw material prices, VAT, and plans to increase TDL trips, Redma said the solution is to increase working capital loans for entrepreneurs so that the utility of production capacity does not then decline. Furthermore, from the market side there must be security from imported goods, especially those that are illegal.

"Local markets must be secured, because currently there are still illegal ones. There could be more [illegal imported products] if we increase the price," he explained.