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Indonesian apparel & fabric exports expected to decline: TexPro

16 Apr '21
2 min read
Pic: Shutterstock
Pic: Shutterstock

Exports of apparel and fabric from the Southeast Asian nation of Indonesia are expected to decline during the first seven months of this year, mainly on account of the continuing impact of COVID-19 pandemic in the country as well as major regions of the world. Around 70 per cent of textiles produced in Indonesia are exported to the US, EU and Middle East.
 
 
In 2019, Indonesia exported apparel and fabric worth $9,172.36 million, with a monthly average export of $764.36 million. Last year, the value of export declined by 15.94 per cent year-on-year to $7,709.94 million due to the COVID-19 pandemic. The monthly average export decreased to $642.49 million in 2020. This is expected to drop further to monthly average of $599.30 million during January-July 2021, a fall of 6.72 per cent, according to Fibre2Fashion's market intelligence tool TexPro.
 
The Indonesian industry ranks among the top 10 producers and exporters of apparels and textiles in the world. The industry employs approximately 600,000 workers. In recent years, approximately 20 per cent of factories have shifted their production from West Java to Central Java due to lower labour costs. However, efficiency is much lower in Central Java compared to Jakarta and surrounding areas of West Java.
 
Indonesia’s strength is its median age which is 28.6 years. This ensures availability of abundant skilled workforce as well as young consumers in the country.
 
With effect from January 1 this year, Indonesia has implemented the Omnibus Bill, aimed at creating new jobs, increase investments, reduce taxes, easing licensing procedures and revamping the ease of doing business for both domestic and overseas manufacturers.
 
Recently, the Indonesian Trade Promotion Centre (ITPC), along with the Indonesian Embassy in Mexico, has taken efforts to boost exports of home decor items and textiles to Mexico. The cooperation includes market Balinese clothes and textiles, and Indonesian furniture in Mexico.
 

Fibre2Fashion News Desk (JL)

This according to Fibre2Fashion's Market Intelligence Tool - TexPro

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