Indonesia’s Ministry of Industry (Kemenperin) projects believe the value of national textile and textile product (TPT) exports will grow rapidly in the next two years. This optimism is in line with various programs and incentives given by the government to boost the performance of leading sectors.
The textile industry is an export-oriented labor-intensive sector. In 2019, they are targeting exports worth $15 billion, says minister of industry (Menperin) Airlangga Hartarto. He further added that there will be additional production capacity of 1,638 thousand tons per year with an investment value of Rp 81.45 trillion and employment of 424,261 people. To expand their export market the government is working to establish cooperation agreements with the United States and the European Union. The import duty of Indonesian textile products is still subject to 5 to 20 per cent in the US, while Vietnam's exports to America and Europe are zero per cent, says Hartarto.
Hartarto is optimistic the national textile industry can compete globally because, this sector has been integrated from upstream to downstream and its products are known to have good quality in the international market.
To achieve the target, new investment and expansion in every sector of textile industry is needed. The government is focused on creating a conducive investment climate by issuing policies that could facilitate industry players in trying in Indonesia. For example, facilitating the provision of fiscal incentives in the form of tax allowance and tax holiday says Airlangga.