Home / Knowledge / News / Textiles / Domestic textile products losing market in Indonesia
Domestic textile products losing market in Indonesia
06
May '17
Domestic textile products have been losing their foothold in Indonesian market over the past five years with imported products making a dominated presence controlling 70 per cent of the domestic textile market. In addition, clothing no longer appears a priority requirement for the people with motorcycles figuring higher in their priority. 
 
"Over the past five years, the domestic textile products have continued to lose their foothold in competition on the domestic market. Imported products have held control of 70 percent of the $10 billion market a year leaving only 30 per cent of the market for domestic products," Indonesian Textile Association (API) chairman Ade Sudrajat said, according to an Indonesian news agency. 
 
Ade said trade in textile products such as finished wear was relatively quiet in areas like Tanah Abang market in Jakarta, Turi market in Surabaya and Klewer market in Solo. He also expressed concerns over the declining purchasing power of consumers with clothing no longer appearing a priority requirement, the report said.
 
The government needs to address the problem. Earlier, there was government help in form of direct aid (BLT) that could increase peoples' buying power. 
 
"Clothing is no longer a priority requirement for the people. Motorcycles have become higher in their priority," he said in the report. 
 
API also noted that 90 per cent of the basic material for readymade wear is imported like cloth from South Korea, China and Japan. However, API is optimistic that the country's textile industry would continue to grow as indicated by data from the Central Bureau of Statistics (BPS) which showed that the country's exports of textiles rose 3.8 per cent year-on-year in the first quarter of 2017.
 
"I am confident in the next quarter the country's exports of finished products would increase again," he said. 
 
Earlier, the industry ministry said it would coordinate with the trade ministry to curb imports of textiles and textile products (TPT) to protect the domestic industry. Director general of chemicals, textiles and multifarious industries Achmad Sigit Dwiwahjono said the government encourages development of upstream textile industry.
 
"The people are called on to use local products as their contribution to boosting the domestic industry," Dwiwahjono was quoted as saying. 
 
Another challenge faced by the industry is that most of the country's textile factories especially in weaving and knitting sector still use old machines, which are no longer competitive in efficiency, the report said. Exports of TPT grew only 2 per cent year-on-year to $2 billion in the first two months of 2017, Achmad said.
 
He said the textile market is predicted to continue to increase domestically and globally with the growing population and increase in demand from non wear segments such as for furniture.
 
Industry minister Airlangga Hartarto said the country's TPT industry had suffered a contraction in growth. In 2016, investment in the TPT industry was valued at Rp7.54 trillion with export earnings at $11.87 billion. The industry provided jobs for 17.03 per cent of working people in the manufacturing industry.
 
Textile industrialists should not delay investing, otherwise in the next five years it would be difficult for Indonesia to compete in international market with other Asian major textile makers such as India, China, Vietnam and Bangladesh, Hartarto added. (SV)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search