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Related Keywords: annual production capacity of sector will rise, export oriented labor intensive sector, grow rapidly in the next two years, Indonesia textile exports, Indonesian textile industry, Ministry of industry Airlangga Hartanto projected, national textile industry, touch USD fifteen billion by 2019, value of national textile and textile product exports

The Indonesian textile industry is an export-oriented labor-intensive sector and believed that the value of national textile and textile product (TPT) exports will grow rapidly in the next two years. Ministry of industry Airlangga Hartanto said that the Indonesia textile exports is projected to touch USD 15 billion by 2019 and likely to employ 3.11 million people. By then, the sector’s annual production capacity will rise to 1,638 tonnes.

Related Keywords: API, during the slowdown of global eonomy, falling to compete with Vietnam, FTA, hit a low, hope for better future, IMF, Indonesian textile industry, many textile firms bankrupt, production costs spiral, sales dwindle, TPP

Indonesian textile industry is one of the many sectors that have hit a low during the slowdown of the global economy. As Indonesia is failing to compete with Vietnam, many textile firms in Indonesia are becoming bankrupt as production costs spiral and sales dwindle. But the industry still has hope for a better future.

Vietnam outshines Indonesia in this sector as they has already joined the Trans-Pacific Partnership (TPP) and completed negotiations for a free trade agreement (FTA) with the European Union. Indonesia, meanwhile, will not be joining the TTP for another two years.

Related Keywords: free-trade agreement of Indonesia, FTA participating countries, garment manufacturers, Indonesian apparel sector, Indonesian garment makers, Indonesian textile industry, tariff barriers in Indonesia, textile exports of Indonesia, US apparel import market

Indonesian textile and garment makers are pushing the government to join a greater economic partnership with European and Pacific Rim countries in order to boost the country’s exports by taking part in the two international trade pacts.

Anne Patricia Sutanto, deputy CEO of garment manufacturer PT Pan Brothers, said that she expected that that the government would stay committed to joining comprehensive partnerships with the EU and US-led Trans-Pacific Partnership (TPP).

Related Keywords: Ade Sudrajat, demand of textile products, economy of Indonesia, Indonesia textile association, Indonesian textile industry, local textile manufacturers, small-scale textile companies, textile exports of Indonesia

The textile industry in Indonesia is currently facing pressure from both inside and outside the country. The slowing economic growth of the country led to a decline in the people’s purchasing power causing lower demand for textile products in domestic market.

Ade Sudrajat, chairman of Indonesia Textile Association (API), said that due to lack of demand, the factories cannot produce as the goods produced 2-3 months back are still in their warehouses. Most of these companies are small-scale with 360 employees on average, he added.

Related Keywords: Importing textile products from China, Indonesian Textile Association, Indonesian textile industry, more profitable, pressured in second half of the year, sales and exports remain sluggish, textile products

Indonesian textile industry would still be pressured in the second half of the year and predicted that sales and exports of textile products would remain sluggish, according to Ade Sudrajat, head of Indonesian Textile Association (API).

The domestic textile and related products market has been projected to generate Rp 60 trillion ($4.3 billion) in the second half of the year as local products hold only 20 percent of market share and the industry feels the effects of a dragging economy, an association chief said.

Related Keywords: fibre and fabrics, foreign exchange, global competitive challenges, Indonesian textile industry, knitted or crocheted fabrics, man made filament, provide employment, registered growth in import, Southeast Asian nation, Textile and Clothing industry

The Southeast Asian nation of Indonesia in the first quarter (Jan to Mar) of 2015, imported US$ 330 million worth of man-made filaments registering a growth of 11.15 percent over imports of $296.9 million made during the corresponding period of 2014, according to the data from Statistics Indonesia.

While, knitted or crocheted fabrics imports increased by 7.31 percent to $327.4 million compared to imports of $305.1 million made during the same period last year, the data showed.

Related Keywords: FTA, global textilex export, Indonesian Textile Association, Indonesian textile industry, international marketplace, stronger trade pacts

Indonesia currently ranks ninth in global textiles exports and with the Indonesian textile industry growing steadily, sector players are looking for stronger trade pacts as well as more investment to maintain a competitive edge in the regional and international marketplace.

The export target for 2014 is part of national plans to become the number one globally in textile exports by overtaking China, which is shifting its economy from textiles to services.