Textile machinery necessarily closely related to the textile industry. In Indonesia, the procurement of textile machinery is needed because there is here a lot of the textile industry. Although it has many textile factories, Indonesia is still very dependent on imported machinery.
When the era of rampant free trade practiced, precisely the condition of the textile industry in Indonesia is getting worse. At the time of increasingly fierce competition, the Indonesian textile industry instead filled with a variety of problems, one of the machines in the field of textiles that are imported.
Depending on the Indonesian Textile Industry Textile Machinery Import
We all know that the textile industry is one of the backbone of Indonesian exports. But unfortunately, the industry is still highly dependent on imported machinery. Chairman of the Indonesian Textile Association (API) said that about 99.9% of the textile machinery industry in Indonesia come from abroad. This is due to the absence of supporting komponenn industry or textile industry machinery manufacturing industry in Indonesia.
Indonesian Textile Association (API) estimated exports of textiles and textile products (TPT) will increase with the increasing export market opportunities lately. During the first half in 2012, exports of textiles and textile products (TPT) Indonesia reached 3.5 billion US dollars.
This number increased compared to the previous year, which is only reached 3 billion US dollars. In fact, compared to other exporting countries, only the Indonesian state that is able to improve the performance of exports of textiles and textile products (TPT).
Although there are a number of foreign investors who are interested in developing investment in machinery, there are many requirements that can not be met. For example, to be able to meet the needs of employees of the textile company that has a lot of entry into Indonesia, Director of Textile Industry and Miscellaneous Industry Ministry will intensify joint training of Indonesian Textile Association (API).
Indonesia Need Industrial Machinery Textile Machinery Makers to Press Imports
Indonesian Industry Minister said that in order to mitigate and reduce imports, the Indonesian government is in dire need of industrial machinery textile industry machinery maker. In particular, the Minister of Industry Indonesian require makers of industrial machinery for the textile industry has plans to restructure around 500 textile machinery industry.
To realize this plan, stakeholders have been invited investors to participate in building the industry. Until now, there are four to five investors who were negotiating for the planning of industrial development of the textile industry machinery maker with an investment of around 1 billion dollars.
Most investors who are willing to build this industry from Japan and China. If you can make it happen quickly or in this year, these investors will be given a tax holiday. The Indonesian government will provide tax holiday of about 5 to 10 years free pay PPH.
If, these investors are not able to implement it, was forced to import still being done for two more years. This certainly will pressure the government, especially an impact on the textile industry in Indonesia. However, the Indonesian government hopes this year the investor is able to realize the machine industry. The government has reduced imports of the main raw material of steel and petrochemicals gradually. In addition, exports of mineral raw materials was already stopped.
On the other hand, the government, especially the Ministry of Industry, will focus on projects downstream agro-based industries, oil and gas, and minerals to accelerate the process of industrialization. The government will also increase the competitiveness of the industry and develop Small and Medium Enterprise (SME).
The purpose of the program downstream agro-based industries, oil and gas, mining and mineral materials, is to increase the value added in the country, strengthen the structure of the industry, providing business opportunities in Indonesia, and provide jobs.
Indonesia and Japan Cooperation Investment Textile Machinery
Indonesia will explore investment cooperation with Japan’s textile machinery industry. Related to this, the Ministry of Industry has lobbied for the country of Japan is interested in building an engine plant in Indonesia‘s textile industry.
Director General of High Technology-Based Industry Ministry has been trying to persuade Japan to be willing to invest in manufacturing and sewing machine bobbin. Director General of High Technology-Based assume that in terms of capability, Japan is quite strong in the development of the textile machinery industry.
However, negotiations with Japan do not get a positive result because Japan still requires two to three times in the final meeting to decide the investment plan. In the assessment that has been done, discussed concerns about the type of investment cooperation and Japan have the option of investment in the form of single or jointly with Indonesian companies.
Besides Japan, Taiwan’s government has also been lobbying to want to invest in the sector of textile machinery and automotive industry. Country Taiwan is known expert in the manufacture of sewing machines and shoe production machines. So far, the Indonesian government is merely offers and Taiwan will try to networking with its industries.
On the other hand, the Chairman of the Indonesian Textile Association (API) said that Japanese investors should obtain tax incentives that are willing to realize the plan to build engine plant in the Indonesian textile industry. Without the lure of incentives, investors are difficult to enter Indonesia.
For example, the government could provide a reduction or exemption of tax paid by a tax holiday or within a certain period and the lure of other incentives. Well, when Japan begun to sell their products, the textile industry in the country will benefit from the value.
As a concrete illustration, the price of a sewing machine can now be priced around 600 dollars. If the country of Ja
pan sent directly, the possibility of the domestic industry will gain jaug lower price because there is no import duty or distribution costs.
Actually, our country has about 2,900 textile company must obtain the restructuring process engine. However, only 600 new companies that have undergone the process, while the rest have not been restructured.
Revitalization Fund Textile Machinery Must Right Target
Revitalization fund industry machinery textile industry and textile products (TPT) to be provided by the government to the textile industry to be right on target. Funds were initially 135 billion dollars and is now reduced to 100 billion dollars should be used as well as possible reasons for producers, textile funding is paramount.
Now, companies that work in the textile industry has 2,600 companies, ranging from small, medium, to large company ‘. With this amount, it is important to do a proper revitalization grants.
In the beginning, the government has proposed allocation of funds for textile machinery revitalization program by 135 billion dollars in 2013. But the draft budget, the discussion at the level of the House of Representatives (DPR), the budget trimmed to 100 billion dollars. Cutting is done to cover the financing needs of the government program that is considered more important.
Despite the reduced budget, the government is confident this program will continue to run effectively help increase the performance of textiles and textile products in the days to come. Cutting the budget to 100 billion dollars is not a problem because the program has been longstanding.
Over the past few years, the Ministry of Industry has made a restructuring program machines for the textile industry. The government also provides incentives sum of 10% of the total budget proposed by the textile and textile products to the restructuring of the textile machinery. thus, the machines can be more competitive problematic.
The government is very optimistic investment textiles and textile products will continue to grow because the industry is starting to prepare, including the procurement of textile machinery.
Go ahead Indonesian textile industry!