Indonesia to Help Textile and Footwear Industries by Providing Incentives
Jakarta. The Ministry of Industry is helping the textile and footwear industries to export more of their products by providing export incentives and import facilities for input materials.
“The ministry will stimulate the labor-intensive industries to export more into foreign markets. We hope this strategy will help the two stagnating industries,” Harjanto, director general of chemical, textile and various industries at the Ministry of Industry, said on Tuesday.
The government plans to ease requirements currently imposed on manufacturers to procure raw materials and to access financing, Harjanto said. Furthermore, the government will also establish buffer stocks of cotton and leather to ensure steady supplies of raw materials.
In addition, the government will ramp up trade promotion efforts in the domestic market and set up free-trade agreements (FTAs) with the prime export markets of Indonesia’s footwear and garment industries. The Indonesian Textile Association (API) has repeatedly urged the government to start FTA negotiations with the European Union to make prices of Indonesian products more competitive in Europe.
In recent months, the textile and footwear industries have laid off tens of thousands of workers as manufacturers cope with rising production costs, higher wages and declining domestic sales, according to API.
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