The Indonesian Textile Association (API) welcomed the government’s extension of the income tax incentive (PPh 21 borne by the state) but stressed that its impact on the textile and textile product (TPT) industry will be minimal. While the scheme exempts workers in labor-intensive industries earning up to IDR10 million per month from paying income tax, API Chairman Jemmy Kartiwa noted that weak domestic and global demand remains the sector’s main challenge. He urged broader measures to stimulate purchasing power, such as job creation and lower lending rates, arguing that cheaper loans would ease household burdens and free up spending that could benefit the textile industry. API Executive Director Danang Girindrawardana added that the incentive may help prevent mass layoffs in 2026 by protecting workers’ purchasing power, but he expressed a pessimistic outlook for the industry. With the government maintaining budget efficiency measures, including reduced spending on uniforms, and demand expected to remain volatile, API sees limited prospects for significant growth in the near term.Source: https://indonesiabusinesspost.com/5260/markets-and-finance/textile-association-tax-incentive-extension-offers-limited-relief-for-industry# (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 19 September 2025