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Imported clothing set to rule domestic markets
Nov '09
In Indonesia, textile and clothing imports are on a steady rise since the last few years and more so in the current year, which is leading experts to aver that by the year end, share of imports in the domestic markets could touch 50 percent, up from 35 percent in 2008.

According to experts, domestic market is estimated to touch Rp 70 trillion (about US $7.42 billion) by the end of this year and the pace at which imports of textiles and clothing are growing; its share could cross the market share of domestic producers.

One of reasons put forward by experts is the innumerable licenses given to importers, mostly traders and middlemen, without verifications by the Industry and Trade Ministry, along with which illegal imports are also on the rise, say the experts.

Although official import data reveals that imports in the first quarter reached US $1.05 billion in the first quarter of 2009, from $1.22 billion in the same period a year earlier and $1.23 billion in the last quarter of 2008, industry people say the quantum of imports is higher by a wide margin, thanks to illegal imports.

The textile and apparel sector is also worried due to the low rates of duty levied on goods imported from China, Korea and Japan and the signing of the Free Trade Agreement between ASEAN of which Indonesia is a member with China, could mean more trouble for local manufacturers.

Senior officials from the Ministry of Trade and Industry on their part have given assurances to conduct investigations into the surge in imports of textile and clothing in the recent past.

Fibre2fashion News Desk - India

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