The Indonesian government is actively preparing special incentives for vulnerable industries facing layoffs, particularly in the textile and textile product (TPT) sector within designated facilities like Bonded Zones. Jemmy Kartiwa Sastraatmaja, the General Chairman of the Indonesian Textile Association (API), stressed the importance of these incentives in safeguarding the domestic market against a surge of imported goods. The goal is to bolster the domestic textile industry, and the government has committed to issuing new regulations within two weeks. These regulations will modify inspection rules from Post-Border to Border supervision and enforce restrictions on the majority of HS Product TPT.
The planned incentives aim to facilitate domestic TPT industries in selling their products within the domestic market. Eligible entrepreneurs, focusing on exporting up to 50% of their merchandise, will receive these incentives. Chandra Wahjudi, the Chairperson of the Sectoral Policy Committee at the Indonesian Employers' Association (Apindo), welcomed this incentive plan, emphasizing its potential to aid domestic textile producers. He highlighted the concern of non-VAT imposition on many imported textile products, primarily from China, flooding the market, making it challenging for local traders to compete due to significantly lower prices. Data from the International Trade Center (ITC) indicated a substantial gap between China's textile exports to Indonesia and Indonesia's textile imports from China, prompting a need for closer scrutiny to address potential issues like illegal imports or under-invoicing. Consequently, besides incentives, Chandra stressed the necessity of effective implementation and oversight of existing policies by the government to ensure the resilience of domestic textile producers.
