Home / Knowledge / News / Textiles / Indonesian textile exporters cut-down growth target
Indonesian textile exporters cut-down growth target
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 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kevin Nelson

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

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


Browse Our Archives


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