The Indonesian upstream textile industry has urged the Fiscal Policy Office in Indonesia, Badan Kebijakan Fiskal, or BKF to exempt local raw materials supplied by local manufacturers from VAT. Currently the Indonesian Government only provides tax exemption for imported raw materials to those companies that obtained the so-called “Ease of Import Facility for Export Purposes” (in Indonesian: Fasilitas KemudahanImpor Tujuan Ekspor, or KITE) on the strict condition that these companies only use these relatively cheap imported raw materials for output that is shipped abroad.