Indonesia to be next destination for global apparel buyers

20 May '13

2 min read

Indonesia, one of the leading textile and apparel platforms in the Southeast Asian region, could become the new destination for the global apparel buyers after China, mainly due to low production cost and availability of cheap labor.

According to the industry experts of Indonesia, several international clothing manufacturers are investing in the country and it will become the global source for textiles and garments after China.

Speaking to fibre2fashion, president director of PT Rejeki Isman-an integrated textile mill, Mr Iwan Setiawan Lukminto said, “Several expansions and new investments have been witnessed in the Indonesian textile and garment industry this year as the country has become the most preferred destination for the global clothing producers and retailers including China.”

“There will be an increase in competition in the Indonesian textile and garment sector due to new investments in the industry," he mentions.

Mr. Ade Sudrajat, chairman of Indonesian Textile Association, says, “Indonesia is still maintaining its position in global apparel market because we are promoting more democracy than economy.”

When asked whether there will be any shift in orders from Bangladesh to Indonesia due to the recent incidents in the South Asian country, he says, “The recent incidents in Bangladesh is not a major reason for shifting international buyers to Indonesia.”

The Indonesian textile industry is a major contributor to the country’s economy and it also generates more than 2 million jobs in the country.

Indonesia caters to around 1.8 percent of global demand for textiles and garments equaling 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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