BKPM Recommends That Indonesia'S Income Tax On Textile And Footwear Industries Be Reduced.

The Investment Co ordinating body (BKPM) wants to advise the government that the twenty-first terms of the textile and footwear industry should be levied.

(PPh) a decrease of 50%.

Frankie, director of investment co ordination Agency (BKPM), held in Jakarta about Franky Sibarani.

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"The purpose of providing income tax incentives to the two sectors is to improve the competitiveness of the two industries in the face of economic weakness," said the investment party's press conference.

"We suggest that the government should reduce the income tax of 21 of the 21 companies that employ 5000 workers by 50%," he said.

The other condition is that the company's export percentage reaches 75%.

"The company must also have a social security system and payroll in 5 years," he said.

In addition, the Investment Co ordinating agency also recommended that the textile and footwear sector be rewarded with Tax Allowance.

The tax exemption is conditional on the total investment of at least 50 billion shields and the employment of 2000 labor force enterprises.

Frankie continued, the Investment Co ordinating agency on Wednesday (2) has submitted the above two proposals to the Secretary for economic co ordinating, Darmin Nasution.

"I think there may be a one or two review, but so far, the Minister for economic co ordination has welcomed it," he said.

Between January and September this year, the total investment in the textile and footwear industry reached 11 trillion and 550 billion shields, of which 9 trillion and 800 billion came from the textile industry, up 148% from the same period last year, and the remaining 1 trillion and 600 billion shields came from the footwear industry, down 35% from the same period last year.

The textile and shoemaking industry employs 106 thousand and 103 effective labor force, or invests in the 1 trillion shield investment in the textile and shoemaking industry, employing 17 thousand and 124 labor force, 6.2 times higher than other industries in absorbing labor force.

Last year, the total export volume of the textile industry amounted to US $5 billion 560 million, while the total export volume of the shoe making industry amounted to US $2 billion 990 million.