The adjustment of electricity rates is quite unfortunate by textile and textile product (TPT) industry players. Moreover, the condition of the national textile industry is said to have not fully recovered after being affected by the Covid-19 pandemic. General Chairperson of the Indonesian Filament Yarn and Producers Association (APSyFI) Redma Gita Wirawasta noted several points that are currently considered unfair regarding the cost of electricity in the textile industry. First, the high rate of peak load time (WBP). Second, there are no tariff cuts or discounts for use at night.
In response to this, the Ministry of Industry (Kemenperin) will facilitate the proposal of textile and textile product (TPT) industry players so that the government adjusts the electricity peak load time (WBP) tariff.
"This proposal deserves consideration because electricity tariffs are the second highest burden in the upstream textile industry so it has a significant impact. From the structure of energy costs, electricity is the second largest after raw materials, so tariff adjustments are indeed needed," said the Director of Textiles, Leather and Footwear. Ministry of Industry Elis Masitoh in Jakarta (13/6).
Elis explained that the electricity tariff in the textile industry takes up a portion in the range of 20-25 percent of the total expenditure. The largest expenditure comes from raw materials, which is around 50 - 55 percent.
To a lesser extent, continued Elis, this will affect the performance of the industry, especially in the second quarter of 2022.
He estimates the growth of the textile industry in the second quarter of 2022 will be below 10 percent.
The chairman of APSyFI also said the same thing, who predicted that the textile industry growth would slow down in the second quarter of 2022.
"The growth of the textile industry in the second quarter of this year is below 10 percent," said Redma.
In the first quarter of 2022, the Indonesian textile industry recorded a growth of 12.45 percent, one of which was driven by increased demand at the time of Eid.