Increased government support and ongoing trade negotiations with the EU are expected to underpin growth in Indonesia’s textile industry.
In August, Industry Minister Airlangga Hartarto announced that the government is developing a number of incentives, including extending tax breaks and lowering gas prices, in a bid to boost the competitiveness of the country’s textile industry.
As part of the incentive package, the government has also proposed removing value-added taxes on raw materials produced locally, a move that could cut production costs by making domestic materials more competitive and encourage increased investment in the upstream segment.
For the full story, see the December 2016 edition of Textiles South East Asia. Not a subscriber? Sign up HERE