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'Indonesian textile industry once again entering growth phase'
Nov '11
The Indonesian textile and garment manufacturing industry seems to be once again entering a phase of growth, earlier seen during the time of President Soeharto, especially in the 1980s, according to an expert.

The trade surplus in Indonesian textile and garments has increased from around US$ 4 billion in 2007 and 2008 to over US$ 6 billion at present. This has been possible due to the expansion of several textile and apparel manufacturing units in recent years, as they were not only able to meet the rising domestic demand but were also able to better their export performance.

Of late, industries manufacturing polyester have started expanding their production capacity, a trend not seen for nearly fifteen years in Indonesia.

Industries engaged in the production of rayon have also increased their production capacity. For example, South Pacific Viscose, a subsidiary of Lenzing Group of Austria, has increased its total rayon production capacity to 245,000 tons per annum, the highest in Asia. The company now plans to increase its production capacity further to 325,000 tons by 2012-end.

In recent times, there has been a flow of foreign direct investment (FDI) into the country, and this is also expected to give a boost to manufacturing in the coming years. The influx of FDI can be seen in industrial zones of Bekasi, Karawang and Tangerang in West Java.

Moreover, the floods in Thailand and earthquake in Japan this year have forced companies to think about diversifying their production facilities. This is expected to benefit Indonesia as some companies will choose the country for their alternative production facilities.

Fibre2fashion News Desk - India

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