One of the many textile shops on Jl. Pintu Air, Central Jakarta, offers various bargain fabrics (Photo: Jakarta Post)Jakarta (VNA) – Indonesia’stextile industry needs to be revitalized given the majority of its factories,especially weaving and knitting ones, still use old machines, in order to dealwith fierce competitions from other countries in the next five years.
The work is needed though the industry isable to compete well globally due to integration from upstream to downstreamsectors, according to Industry Minister Airlangga Hartarto.
Economic policy makers suggested that the textile industry will find it moredifficult to face competitions with India, China, Vietnam and Bangladesh in thenext five years if investment to this sector is not increased.
Indonesian Ministry of Industry is preparing toissue a special financial regulation in the form of fiscal allowance for the export-orientedlabour-intensive industry. Accordingly, industrialists will have income taxdiscount to be used for business expansion.
Minister Airlangga Hartarto added that theMinistry is seeking comprehensive cooperation agreements with Europe and theUnited States in the hope of benefiting from better tax.
It is also coordinating with the Trade Ministrycurb textile imports to protect the domestic textile sector.
Indonesia’s textile sector has provided jobs forthree million people. In the first two months of this year, Indonesia's exportsof textile were valued at 2 billion USD, up 3 percent against the same periodlast year. The investment in this sector was worth 4.54 trillion IDR (11.87billion USD) in 2016. - VNA
