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 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Textiles | On 27th Oct 2016

Fischer Konzept installs sixth Zünd digital cutter

Fischer Konzept, German developers of individual packaging solutions...

Interviews View All

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Shawn Honeycutt
Bolger & O'Hearn

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

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

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search