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Indonesian textile industry faces hurdles - Experts

13
Mar '12
The Indonesian textile industry may face difficulty in expanding this year as the country's domestic market is dominated by Chinese goods, while its exports are also not likely to increase, according to experts.

Analysts say textiles and apparels from China are being sold in Indonesian markets at low prices and are also of relatively good quality, thus leaving little scope for domestic textile and garment producers to boost their sales.

Similarly, the global textile and apparel market is dominated by China, followed by countries like Vietnam, Cambodia, Bangladesh and India, which makes it difficult for Indonesian firms to increase their exports, they say.

In addition, the decreasing purchasing power in traditional markets of the US and EU will also affect Indonesian exports, they add.

According to experts, Indonesia has lost its textile and garments auxiliary materials market and it now imports most of its major needs from China, including needles, buttons, zippers and sewing machines.

Moreover, analysts point out that the productivity of Indonesian workforce is still low compared to other countries.

Fibre2fashion News Desk - India


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