Home / Knowledge / News / Textiles / Indonesian textile exporters cut-down growth target
Indonesian textile exporters cut-down growth target
24
Nov '11
Textile manufacturers in Indonesia have reduced their targets for export growth next year owing to economic slowdown, especially in the US and the EU, its two main export destinations.

For the last couple of years, Indonesian textile exports witnessed a growth of around 20 percent. But, now the exporters are predicting that exports will increase in single digits and peg the growth at around 5 percent in 2012.

During the current year, textile manufacturers in the country project the earnings from exports at US$ 13.1 billion compared to last year's figures of US$ 11.2 billion, an increase of 16.96 percent. Owing to the European debt crisis, the export growth target for 2011 was recently revised downwards by around 4 percent to US$ 13.1 billion by the Indonesian Textile Association (API).

According to the Trade Ministry, Indonesia exported textile items worth US$ 9.16 billion in the January-August period, contributing 8.53 percent to the total non-oil and gas exports of US$ 107.4 billion during the same period.

In 2010, exports to the US and European markets contributed 41.44 percent and 13.81 percent respectively to the country's overall textile exports.

Recently, the US has renewed the generalized system of preferences (GSP) facility to Indonesia, and hence, its exports to the US are expected to increase in spite of the ongoing financial crisis in the Western nation.

The GSP scheme allows Indonesian goods, including textiles, to enter the US at zero percent import duty, which gives these goods a competitive edge over products from other countries.

In addition, Indonesian textile entrepreneurs are also exploring export possibility of their products to Brazil, China, Korea and other countries.

Japan is expected to remain one of the key markets for Indonesia's textile exports and a 60 percent year-on-year increase is likely in shipments to the country this year.

Indonesia is the largest economy in the Southeast Asian region and during the last three years it has attracted several new investments and orders for textiles and garments from foreign firms that have moved their plants and orders from China and Vietnam after a steep increase in labour costs in those countries.

In Indonesia too, the problem of wage increase is significantly affecting textile companies, which directly employ nearly 1.5 million workers. Currently, wages account for 15 to 20 percent of production costs.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search