Home / Knowledge / News / Textiles / Indonesian textile industry to grow sluggishly in 2012
Indonesian textile industry to grow sluggishly in 2012
Dec '11
The growth of the Indonesian textile industry is likely to remain sluggish during 2012, as the sector would be hit by global recession and a hike in the cost of production due to rise in electricity tariffs.

As stated by Indonesian Textile Producers Association (API) Chairman Ade Sudrajat, the industry is predicted to achieve only a two percent growth during 2012, which is considerably lower than around 20 percent growth that the industry is achieving over the past few years.

Mr. Sudrajat said he foresees the international textile industry to witness a negative growth in 2012, but when talking about Indonesia and the Asean region, it can still post a slight positive growth.

The US-Eurozone debt crisis coupled with downturn of the Chinese economy was the main reason that spurs the decline in the global textile industry, the API Chief said.

The EU, US debt crisis may lead to a fall in demand for textiles, however, the production is likely to register a slight increase, he added.

He further said that the production costs for Indonesian textile industry may rise in 2012 as the Government is likely to introduce new sweeping policies, including an increase in the basic electricity cost.

According to the API Chief, the proposed hike in basic electricity tariff would lead to over 10 percent rise in the domestic cost of production of textiles, next year.

Thus, it is sought from the Government that it focuses more on development of the textile industry by accelerating infrastructural growth, as any hindrance to infrastructural development would prove detrimental for industrial growth in general, he said.

Mr. Sudrajat stated that he has not come across any indications of global slump impacting the Indonesian economy so far, but he expects that the effects would become evident next year.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Apr 2017

Maharashtra govt working on second textiles policy

The textiles department of the government of Maharashtra is working...

Apparel/Garments | On 27th Apr 2017

EC takes action to make garment sector more sustainable

The European Commission (EC) has presented a set of focused actions...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Poojaa Kumar Deepak

Zeven's performance sports apparel is designed for the Indian body type,...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Eric Scholler

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

Kerem Durdag
Biovation II LLC

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

Suresh Patel
Sidwin Fabric

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Yash P. Kotak
Bombay Hemp Company

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

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


news category

Related Categories:
April 2017

April 2017

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


Browse Our Archives


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