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    Indonesian Textile Industry President Jacky Heung Ke Wei Proposed 13 Xiang Jianyan

    2019/9/27 21:59:00 180

    Jacky HeungKowePresidentXiang Jianyan

    Indonesia's textile industry is facing severe challenges, prompting the Indonesian textile association (Indo). Nesian Textile Assoication (API) appealed to President zokway for his attention. The latest case in the industry is that Duniatex Group, one of Indonesia's largest textile companies, is unable to pay debts, interest and loans on time.

    In addition to the Duniatex problem, imported goods continue to invade the Indonesian market, so the industry is often regarded as sunset. Moreover, the data from the Indonesian Stock Exchange (BEI) also show that the outflow of foreign capital from the Indonesian textile listed companies has not stopped since the beginning of this year.

    In the relevant meeting minutes, API made at least 13 suggestions to win the response of President zokway.

    First, the competitiveness of the textiles and textile products (TPT) industry will be enhanced by gathering the industry to achieve an increase in exports and a decrease in imports.

    Secondly, I hope to amend the Labour Law No. thirteenth of 2003. The amendment aims to impose heavy burden on Indonesia's TPT industry and weaken the sound development of Indonesia's garment industry.

    Thirdly, trade agreements were signed with countries importing Indonesian products to enhance the penetration of Indonesian products in the export market.

    Fourth, simplify the tax law. API requires only value-added tax (VAT) for final products. No value-added tax is required for goods and services delivery from upstream to downstream.

    Fifth, API provides investment experience in Ethiopia and India as a reference. Investments in these two countries will be rewarded with various incentives and accelerated access to the necessary permits.

    Sixth, API hopes to reduce the energy cost of Indonesia's electricity and natural gas through relief or other mechanisms.

    Seventh, the industry hopes that the industrial park in Central Java, East Java and West Java will be directly controlled by the president, so as to speed up the construction of Indonesian textile factories and ecosystems in a short time and maintain a sound Indonesian garment industry.

    Eighth, API believes that we need to pay close attention and focus on the TPT industry. Therefore, it is suggested that the highest level officials (Secretary General) should be assigned to the TPT industry in the Ministry of industry, trade and labour.

    Ninth, API has seen huge market opportunities at home and abroad in promoting the development of the industry. Therefore, it is necessary for the president to consider the necessity of formulating the "ready-made clothing act".

    Tenth, it is necessary to amend the two provisions of Permendag 64/2017 and Permendag 18/2019, hoping to speed up the process of amending the above decrees and get the full support of the president.

    Eleventh, it is necessary to speed up Enviro Amendments to the nmental Candy (LH) act. This Law aggravates the burden of the TPT industry, because the wastewater management in the TPT industry is more difficult than other industries.

    Twelfth, API supports the policy of strengthening vocational education. However, higher vocational education also needs the attention of the government so as not to have enough staff in the operator class.

    In the thirteenth, the TPT industry is ready to cooperate with small and medium sized enterprises (MSME) so as to be able to operate cooperatively between large enterprises and small and medium enterprises. The TPT industry is also ready to support Indonesian brand merchants, retailers and designers in developing fast fashion and modest fashion clothing in Indonesia. (Note: demure fashion refers to a kind of clothing that accords with Islamic beliefs. )

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