Indonesia’s textile industry needs modernisation
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