Indonesia Textiles Group Seeks Tax Breaks to Tackle Virus Impact

March 23, 2020, 9:47 AM

Producers ask for tax relief and other stimulus to prevent mass lay-offs as firms face a squeeze in cashflow amid slowing local and overseas demand due coronavirus outbreak.

  • Govt should regulate imports to allow only raw materials needed for the local industry and also safeguard it from imports of clothing, Chairman of Indonesian Textile Association Jemmy Kartiwa Sastraatmaja tells reporters at a briefing
  • Association also wants relaxation in debt refinancing and fresh credit at lower interest rate, says Anne Patricia Sutanto, vice president at PT Pan Brothers
  • Textile makers also seek a six-month reprieve in payment of company tax and waiver of fines
  • Some other demands made by the textile association are:
    • Relaxation in VAT payment up to 90 days
    • Use of 14,000 rupiah to a USD for calculation of gas price
    • Delay payment of 50% electricity bill for 6 months
  • Association expects exports to return to normalcy in June, July, according to Redma Gita Wirawasta, secretary general of Association of Synthetic Fiber Producers

To contact the reporter on this story:
Eko Listiyorini in Jakarta at elistiyorini@bloomberg.net

To contact the editors responsible for this story:
Stephanie Phang at sphang@bloomberg.net

Thomas Kutty Abraham

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