/2023/05/22/1174435959p.jpg)
TEXTILE INDUSTRY – JAKARTA. The Indonesian Textile Association (API) predicts that investment in the textile and textile product (TPT) industry sector will be low next year. This is due to the impact of global economic dynamics.
The Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmaja said, the global condition is not good, weakening is still happening and loan interest rates are at their highest.
Jemmy mentioned the current US Fed loan interest rate is 5.5%. He predicts that The Fed will only start cutting interest rates at the end of the second quarter of 2024 and will only have an impact in 2025.
According to him, this affects the purchasing power and utilization of the textile and textile product (TPT) industry in various countries is very low, including in Indonesia which is below 50%, the lowest since 2020.
“So those who invest are very low, both domestic investment (PMDN) and foreign investment (PMA),” Jemmy told Kontan, Saturday (23/12).
Contacted separately, the Vice Chairman of the Regional Autonomy Development of the Indonesian Chamber of Commerce and Industry (Kadin), Sarman Simanjorang believes that the investment target for 2024 will be achieved as targeted. However, this must be accompanied by the involvement of all parties in creating a conducive business and investment climate.
Sarman's confidence is not without reason. The realization of investment set by the government in the last three years has always exceeded the target even though Indonesia is hit by the Covid-19 pandemic.
It is noted, that the realization of investment in 2020 was IDR 826.3 trillion from the target of IDR 817.2 trillion. Then, in 2021 the realization of investment reached IDR 901.02 trillion from the target of IDR 900 trillion. Then, in 2022 the realization of investment reached IDR 1,207 trillion from the target of IDR 1,200 trillion.
With these achievements, Sarman believes that the confidence level of potential investors to invest in Indonesia is very high. Investors believe that Indonesia is a country with high prospects for investment.
Therefore, amid the political year next year, in addition to creating a conducive business climate, other conditions must be met. That is to provide an overview that all stages of the presidential and general elections run safely, comfortably, calmly, and not noisy so that these investors do not hesitate to enter.
Because for potential investors, in addition to the need for conduciveness from the political, security, and other sides.
“I think if we can show this I am sure that the 2024 investment target will be achieved, that's the indicator,” Sarman told Kontan.co.id, Friday (22/12).
Then what is no less important, continued Sarman is other technical issues. Licensing issues, land, infrastructure, and energy readiness continue to be built and assured.
In addition, looking at the government's program, Sarman believes that downstream and/or mining policies have investment appeal. Next, the development of processing industries that process natural resources before being exported also becomes an attraction for potential investors.
“So we are very confident that next year our investment activity will remain high as we have achieved in the last three years,” added Sarman.
