The proposed banking credit restructuring for extension is considered to have to be accompanied by other strategies from the government to ensure that efforts to recover the business world are truly effective. Chairman of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta said the second strategy was needed to guarantee the domestic market, especially in the textile and textile product (TPT) manufacturing sector. "To maintain the domestic market, we need additional capital," said Redma, Thursday (23/6/2022).

Facing future economic conditions and existing pressures, said Redma, inevitably entrepreneurs in the textile sector must ensure the domestic market.
Because, he continued, the export market which was distracted by global inflation suppressed the domestic textile export market. "The traditional export markets of the United States, the European Union, and Japan are countries that are affected by inflationary pressures," he said.

Redma explained that currently the US textile export portion is 30 percent, Japan is 10 percent, and the European Union is 30 percent.

In addition, the proposal from the banking sector industry players to continue with the restructuring of bank loans ending in March 2023 must be sharpened on the implementation side.

Redma said there needs to be a breakthrough to ensure that the implementation of bank credit restructuring can be effective.
"Now the position is a bit difficult because the assets are used as collateral, even though all assets are already guaranteed. So, there must be a breakthrough, can raw materials be used as collateral, for example?" said Redma.

Related to this, Redma said that a clear portfolio is needed from the banking sector, especially for restructuring in the textile and textile product (TPT) industry.
This is because, he continued, the banking sector has an obligation to maintain industrial stability from various pressures, including global inflation and rising raw material prices.
However, bank credit restructuring on company performance does not seem to necessarily guarantee the effectiveness of its implementation in the manufacturing sector, particularly in the textile industry.