Indonesia's import of textile and apparel items from China is expected to have risen significantly after the implementation of the ASEAN-China Free Trade Agreement (ACFTA) in January 2010, according to the Indonesian Textile Association (API).
Chinese textile and garment items enjoyed approximately 40 percent share in Indonesia's domestic market in 2010. It is now estimated to have grown to around 60 percent because of the implementation of ACFTA, API said.
API said products from China will become increasingly dominant in the local market if the competitiveness of Indonesian products continues to decline due to increase in manufacturing and other costs.
The Indonesian textile industry has to really worry about the situation if the Government does not take any firm measures to support the country's textile and garment sector, API added.
Referring to the machine restructuring scheme introduced by the Government to raise competitiveness of Indonesian textile and garment industry, API said the scheme has failed to achieve its desired goal as only 10 percent of the existing 2869 textile manufacturing industries in the country would be able to benefit from the programme.
API urged the Government to find ways to lessen the impact of increase in fuel and electricity tariffs, so that it does not affect people's purchasing power.
Fibre2fashion News Desk - India
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