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outheast Asia'€™s largest garment manufacturer, PT Sri Rejeki Isman (Sritex), welcomes the government'€™s plan to provide tax incentives for companies exporting at least 30 percent of their products as it will help the firm boost business.

Sritex finance director Allan Moran Severino said on Monday that his company would benefit from the regulation because most of its products were exported to over 100 countries worldwide.

'€œHowever, we can'€™t yet calculate how the tax incentives '€” if realized '€” would significantly affect our business as we'€™re still awaiting for the formula that would determine the incentives,'€ he said.

Sritex expected the government to commit to realizing the plan as discussions on providing incentives to local garment manufactures have been ongoing for the last two years, he told The Jakarta Post.

The government recently announced that it would possibly launch eight policies to stabilize the rupiah'€™s depreciation against US dollar, one of which will be to provide tax incentives to Indonesian companies that ship at least 30 percent of their products overseas.

As of the third quarter last year, Sritex exported 57 percent of its products outside Indonesia.

Allan said that around 70 percent of his company'€™s revenues were in US dollars, hinting that exports had significantly contributed to Sritex'€™s total revenues.

The publicly listed company supplied military uniforms to 30 foreign countries and won a tender to supply military uniforms to Germany and Malaysia this year, he added.

The company booked a 23 percent revenue increase to Rp 5.1 trillion (US$385.05 million) in the first nine-month period last year from Rp 4.2 trillion in the same period in 2013.

Its net profit rose 6 percent to Rp 265 billion in the January-September period last year from Rp 250 billion during the same period in the previous year.

While the firm'€™s financial report for 2014 has not been released, Allan said that Sritex'€™s revenue growth last year was higher than its target.

Sritex previously said that its revenues would hit around Rp 7.1 trillion last year.

'€œMeanwhile, for 2015, we foresee between a 10 percent and 12 percent revenue increase, partly due to the strengthening of the dollar,'€ he said, adding that it had not yet taken the possible tax incentive into account.

The tax incentives will likely help Sritex slash its operational costs and boost its net profit. The firm'€™s financial costs stood at Rp 218 billion in January-September last year, a 55.7 percent surge from Rp 140 billion in the same period in 2013, according to the firm'€™s report.

Sritex president director Iwan Setiawan Lukminto said previously that the company would spend between $50 million and $100 million over three years to venture into the fashion retail industry, either by acquiring local and global brands or by designing its own products.

The retail unit, which was expected to start operating by 2018, would contribute around Rp 2 trillion to the company'€™s total revenues, he said.

Sritex'€™s shares, which are traded on the bourse under the code SRIL, rose by 0.96 percent to Rp 210 at Monday'€™s close from Rp 208 on Friday.