Indonesia bets on textile sector for AEC competition

20 Apr '13

2 min read

Indonesia is betting on its textile industry for withstanding competition in the Asean Economic Community (AEC), to be formed in 2015, Industry Ministry MS Hidayat said.

Speaking on the sidelines of a national meeting of the Indonesian Textile Association (API), the Minister said if Indonesian textile makers fail to compete, they would only remain local players, hence it is important for them to boost their competitiveness to enhance their exportability to other countries.

Mr. Hidayat said his Ministry has already discussed the need for framing an outline for the sector’s future growth with local textile entrepreneurs, who presently lack on the machinery front, and depend on imports for machinery components.

He said presently about 2,900 textiles mills operate in Indonesia, and 500 of these mills are in need of revamping their machinery.

Considering this, the Indonesian Government has announced a tax break for investors willing to invest in the country’s textile machinery industry, and has met positive responses from several countries, he said.

As one of the interested parties, China has invited Indonesian delegates to attend an investment forum to be held in China in near future, so as to better understand the demand of the Indonesian industry, the Minister informed.

API General Chairman Ade Sudrajat agreed with Mr. Hidayat on the need for outlining a roadmap for the growth of the country’s textile industry. He said the association would negotiate with countries where they eye a scope to boost exports, and would also make efforts to increase Indonesia’s self- reliance in production of textile machines.

However, it is important that the domestic machine component industries have proper set up backed by engine industries and particularly light industrial sectors, before they can actually launch production to cater to domestic industry, he added.

As a supplier of textiles and apparels, Indonesia caters to around 1.8 percent of global demand equalling to about US$ 12.46 billion, representing around 10.7 percent of the country’s total non-oil and non-gas exports.

Fibre2fashion News Desk - India

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