Home / Knowledge / News / Textiles / Textile exports drop in the midst of US slowdown & inflation
Textile exports drop in the midst of US slowdown & inflation
Jun '08
A slow down in global economy has had a direct effect on Indonesian exports which dropped considerably in the first quarter of 2008 with regards to US and Japan who account for being its largest markets.

Exports to United States, for January-March declined by 0.38 percent to US $1.11 billion against $1.12 billion in the same period of 2007 when it emerged as the largest consumer of Indonesian exports.

This is mainly because US cut down its textile imports from all over the world during this period from $22 billion in 2007 to $21 billion this year.

Exports to Japan also slipped due to effects of US slow down by 3.5 percent during the period to touch $142.2 million. However, experts believe that Japanese market has a bright future prospect once the Indonesia-Japan Economic Agreement comes into force by this June.

This agreement sanctioned in August last year was contracted with the objective of facilitating bilateral trade and investment relations. Once in effect, Japanese and Indonesian fabrics will be allowed transaction with zero percent tariffs in both countries.

Surprisingly, despite low demand from US and Japan, the total amount of exports from Indonesia saw a surge of 5.3 percent to $2.58 billion in the first quarter of this year against $2.45 billion in the same period of 2007. This was largely due to higher demands from other countries including Europe.

In contrast, domestic consumption also dropped because of soaring inflation to result in a plummet in sales by 27 percent to $160 million due to weakened purchasing power.

Directing its exports to European markets is probably one of the best policies for the Indonesian textile industry whose imports from other countries have soared by 19 percent in the first quarter to reach $1.22 billion.

Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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


July 2017

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

news category

Related Categories:

Planning to Take the Leap towards

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

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