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Jakarta July 2017

Menteri PerdaganganSpinning Mill

Achmad Sigit Dwiwahjono, Director General of the Chemical, Textile and Multifarious Industries (IKTA) at the Industry Ministry, on one occasion said that government this year will revitalize textile and clothing industry. He says that textile and clothing industry contribute greatly to the Indonesian economy both from the earning of foreign exchange and the absorption of large numbers of labor due to the labor intensive of the industry by nature.

Government plans to provide machinery revitalization incentives for textile and textile products (TPT) industry to boost production. The focus of incentives fo textile and clothing industry is more on the provision of facilities in terms of regulation and ease of licensing.

He believes that many installed machinery in the industry classified as old. & quot; The incentive can be in the form of reduction of machinery import tax. This kind of incentive can be a kind of stimulus for business people in this sector to grow. For a while this incentive aimed at the textile sector only, & quot; he said.

Responding to textile industry revitalization program launched by the government this year, Prama Yudha Amdan, Executive Assitant of President Director of PT Asia Pacific Fibers Ltd says that, POLY targets growth of around 10% -12%. Last year, POLY posted a net income of around US $ 399 million. This number increased 10% compared to the previous year, accounting for US$360 million.

To meet the needs of raw materials for the textile industry at home, the Ministry of Industry encourages PT Asia Pacific Fibers Ltd (POLY) to revitalize purified terephthalic acid production lines. However, these efforts were still hampered by the unfinished corporate debt restructuring process.

Prama Yudha Amdan, Executive Assistant President Director of Asia Pacific Fibers explained that revamping purified terephthalic acid production will not only benefit the company, but for the industry as a whole. & quot; Government can see the urgency of purified terephthalic acid production as a trigger for the growth of its derivative textile industry, & quot; Prama said.

If purified terephthalic acid production from Asia Pacific Fibers operate, then there is no need to impot raw material supplies. Asia Pacific Fibers' purified terephthalic acid production capacity can meet the needs of domestic polyester raw materials. Overall, domestic purified terephthalic acid needs reached 1.7 million tons. As recorded, the installed capacity of purified terephthalic acid production in the country reached 1.74 million tons last year but production capacity is only 1.5 million tons.

Prama added, revamping requires the approval of government debt restructuring and has an effect on the revitalization of the textile industry nationally. & quot; We are waiting for government action, what kind of incentive package will be provided in the context of this revitalization, & quot; explained Prama.