Kadin backs tax incentives to boost Indonesia's textile industry

..with modernization, especially with AI and robotics, we need to think about what direction the textile industry should take,

Jakarta (ANTARA) - Indonesian Chamber of Commerce and Industry (Kadin) Chairman Anindya Novyan Bakrie has voiced support for the government's plan to provide incentives to the textile and textile products (TPT) industry, including tax holidays and tax allowances.

"We support these incentives, and we also support Danantara's role in helping the textile industry. Remember, textiles, garments, and footwear are among Indonesia's largest export commodities to the United States, and I believe that will also extend to Europe," Bakrie said here on Thursday.

According to Bakrie, the textile industry must continue to be developed despite the challenges facing the sector.

"We just need to be smart about where we want to position ourselves within the supply chain. And second, of course, with modernization, especially with AI and robotics, we need to think about what direction the textile industry should take," he said.

Bakrie noted that the textile industry is highly capital- and cost-intensive, so the government needs to ensure that the sector can not only survive but also continue to grow.

The government is currently discussing incentives for the TPT industry, including tax holidays and tax allowances.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto said President Prabowo Subianto has been pushing to strengthen the national TPT industry, given its contribution to economic growth, job creation, and exports.

According to Hartarto, several measures are being discussed to boost the competitiveness of the TPT industry, including harmonizing tariffs from upstream to downstream, easing access to raw materials, and cracking down on import practices that disrupt the domestic industry.

He added that the government is also discussing the restructuring of TPT companies to encourage reinvestment and strengthen working capital.

Hartarto said the TPT industry currently contributes around 0.97 percent to gross domestic product (GDP), employs around 4 million workers, and has an export value of around US$12 billion.

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Translator: Aji, Kenzu
Editor: M Razi Rahman
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