The lack of market certainty is the cause of the lack of interest from industry players in utilizing investment allowance incentives as a facility to encourage labor-intensive industries. General Chairperson of the Indonesian Filament Fiber and Yarn Association (APSyFI) Redma Gita Wirawasta said the lack of market certainty made industry players reluctant to take advantage of the facility. "So, regardless of the government's efforts to provide incentives, people will not want to invest. People want to invest if there is a market guarantee. Especially, the export market for textiles," said Redma, Tuesday (12/7/2022).

For information, the investment allowance is a tax incentive in the form of a 10 percent reduction in net income tax for labor-intensive companies for 6 years.

In other words, he continued, the large employment absorption expected from this investment could not run optimally and other instruments were still needed, namely market certainty.

So far, said Redma, there has been no new investment into the textile and textile product (TPT) sector since the economy was hit by the Covid-19 pandemic in 2020.

Based on data from the Directorate General of Taxes, in 2020 there were only 2 taxpayers who applied for this facility, and in 2021 only 3 taxpayers. Until the end of last year, there has been no realization of the use of investment allowance.

This means that since it was launched in 2020 there has been no realization of the use of the investment allowance. In fact, this facility is provided to encourage labor-intensive industries and increase the workforce.

This facility is provided starting in March 2020 or before the Covid-19 pandemic. There are 45 company sectors that can get the condition that they can absorb 300,000 workers per year.