Indonesia Government to Extend Tax Incentives to Textile Machinery Industries in 2013

In order to provide a boost to the country’s ailing textile industry, the Government of Indonesia plans to extend tax incentives to textile machinery industries in 2013, Industries Minister MS Hidayat has said. The textile industry would require a minimum of 500 new equipments during next year to perk up the sector, according to the Minister. Several machines that the textile sector presently uses are imported, usually at high cost, which is impacting the competitiveness of the domestic textile industry, the Minister said while addressing a press conference held to discuss the 2013 State Budget. Such machines should be produced within the country and a tax holiday can reduce the imports of these machines over next two years, he added. Mr. Hidayat said the outdated machinery that the country’s upstream textile industry currently uses, needs to be upgraded to enhance efficiency. However, there is sluggish development on this side, and the tax break is thus intended to boost investment in textile machines. Source: fibre2fashion