The Indonesian Textile Association (API) noted that sales of textile products in the domestic market have been sluggish in the last five years. It, occurred in the second curve in 2017 where there was a 30 percent decrease over the first quarter ago.
Chairman of the Indonesian Textile Association Ade Sudrajat says that, in previous years the demand for textile products increased significantly ahead of Idul Fitri. It can be seen by the visible from the volume of vehicles that go to Tanah Abang wholesale center ahead of Ramadan.
However, according to Ade, since the last few years demand is decreasing. In the second quarter of 2016, where there was a moment of Eid al-Fitr, there was still a 10 percent increase in demand for textile products. However, in the second quarter of 2017, the demand dropped very deeply to 30 percent. The sales of textile products in the domestic market in the first quarter of 2017 recorded a decrease of 3 percent.
Ade predicted the decline was due to an increase in the price of basic electricity tariffs that make people divert their funds for the purpose. Therefore, he hopes the government can provide stimulus to the textile industry by providing certainty about energy prices.
In addition, Ade also hopes the government to fix fiscal policy, especially related to taxation. Because, he views during this time the Director General of Taxes only incentive to seek taxes from the upstream industry, but not to the retail industry.