Green Industry Incentive Proposal in Textiles

The Chairman of the Indonesian Filament Fiber and Yarn Producers Association (Asosiasi Produsen Serat dan Benang Filament Indonesia/APSYFI) Redma Gita Wirawasta proposed the use of green industry in national textiles. This is considered to follow the global trend and could be a consideration in the Draft Bill on Textile.

“The point is to reduce carbon. But the problem is that Indonesia is not yet ready to go there in terms of regulations and government policies," he told Hukumonline.

One example of a green industry, continued Redma, is that the production process no longer uses coal as it does today. However, on the other hand, to use gas as raw material and energy, the Specific Natural Gas Price (Harga Gas Bumi Tertentu/HGBT) is too high.

For example, the average Indonesian HGBT is 13-14 dollars, while in India it is only 6 dollars. This price difference has an impact on competitiveness. If the conditions remain like that, he suggested there be incentives and disincentives.

If you want to reduce carbon, such as green energy subscription gas or use risky raw materials, then provide incentives and disincentives. If you don't use it, you don't get incentives. That's what we encourage the government to do," Redma explained.