One of the many textile shops on Jl. Pintu Air, Central Jakarta, offers various bargain fabrics (Photo: Jakarta Post)
 

Jakarta (VNA) – Indonesia’s textile industry needs to be revitalized given the majority of its factories, especially weaving and knitting ones, still use old machines, in order to deal with fierce competitions from other countries in the next five years.

The work is needed though the industry is able to compete well globally due to integration from upstream to downstream sectors, according to Industry Minister Airlangga Hartarto.

Economic policy makers suggested that the textile industry will find it more difficult to face competitions with India, China, Vietnam and Bangladesh in the next five years if investment to this sector is not increased. 

Indonesian Ministry of Industry is preparing to issue a special financial regulation in the form of fiscal allowance for the export-oriented labour-intensive industry. Accordingly, industrialists will have income tax discount to be used for business expansion.

Minister Airlangga Hartarto added that the Ministry is seeking comprehensive cooperation agreements with Europe and the United States in the hope of benefiting from better tax.

It is also coordinating with the Trade Ministry curb textile imports to protect the domestic textile sector.

Indonesia’s textile sector has provided jobs for three million people. In the first two months of this year, Indonesia's exports of textile were valued at 2 billion USD, up 3 percent against the same period last year. The investment in this sector was worth 4.54 trillion IDR (11.87 billion USD) in 2016. - VNA