Home / Knowledge / News / Textiles / Domestic textile products losing market in Indonesia
Domestic textile products losing market in Indonesia
06
May '17
Domestic textile products have been losing their foothold in Indonesian market over the past five years with imported products making a dominated presence controlling 70 per cent of the domestic textile market. In addition, clothing no longer appears a priority requirement for the people with motorcycles figuring higher in their priority. 
 
"Over the past five years, the domestic textile products have continued to lose their foothold in competition on the domestic market. Imported products have held control of 70 percent of the $10 billion market a year leaving only 30 per cent of the market for domestic products," Indonesian Textile Association (API) chairman Ade Sudrajat said, according to an Indonesian news agency. 
 
Ade said trade in textile products such as finished wear was relatively quiet in areas like Tanah Abang market in Jakarta, Turi market in Surabaya and Klewer market in Solo. He also expressed concerns over the declining purchasing power of consumers with clothing no longer appearing a priority requirement, the report said.
 
The government needs to address the problem. Earlier, there was government help in form of direct aid (BLT) that could increase peoples' buying power. 
 
"Clothing is no longer a priority requirement for the people. Motorcycles have become higher in their priority," he said in the report. 
 
API also noted that 90 per cent of the basic material for readymade wear is imported like cloth from South Korea, China and Japan. However, API is optimistic that the country's textile industry would continue to grow as indicated by data from the Central Bureau of Statistics (BPS) which showed that the country's exports of textiles rose 3.8 per cent year-on-year in the first quarter of 2017.
 
"I am confident in the next quarter the country's exports of finished products would increase again," he said. 
 
Earlier, the industry ministry said it would coordinate with the trade ministry to curb imports of textiles and textile products (TPT) to protect the domestic industry. Director general of chemicals, textiles and multifarious industries Achmad Sigit Dwiwahjono said the government encourages development of upstream textile industry.
 
"The people are called on to use local products as their contribution to boosting the domestic industry," Dwiwahjono was quoted as saying. 
 
Another challenge faced by the industry is that most of the country's textile factories especially in weaving and knitting sector still use old machines, which are no longer competitive in efficiency, the report said. Exports of TPT grew only 2 per cent year-on-year to $2 billion in the first two months of 2017, Achmad said.
 
He said the textile market is predicted to continue to increase domestically and globally with the growing population and increase in demand from non wear segments such as for furniture.
 
Industry minister Airlangga Hartarto said the country's TPT industry had suffered a contraction in growth. In 2016, investment in the TPT industry was valued at Rp7.54 trillion with export earnings at $11.87 billion. The industry provided jobs for 17.03 per cent of working people in the manufacturing industry.
 
Textile industrialists should not delay investing, otherwise in the next five years it would be difficult for Indonesia to compete in international market with other Asian major textile makers such as India, China, Vietnam and Bangladesh, Hartarto added. (SV)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Sourcemap

Apparel/Garments | On 17th Oct 2018

Sourcemap launches 1st free digital map of apparel units

New York-based software company Sourcemap recently launched the Open...

US apparel industry is already highly tariffed: AAFA

Apparel/Garments | On 17th Oct 2018

US apparel industry is already highly tariffed: AAFA

The American apparel and footwear industry is highly tariffed, as per ...

USAID backs East African firms to become more competitive

Apparel/Garments | On 17th Oct 2018

USAID backs East African firms to become more competitive

The US Agency for International Development Hub in East Africa is...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Shivani Swamy,

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search