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Textile exports surge on back of US import barriers

28
Apr '07
Import restrictions imposed by the US on Chinese products are proving to be a boon for countries like Indonesia.

Textile and garment exports in the first quarter of this year recorded over 17.5 percent year-on-year growth with the US remaining as the top market.

The US absorbed $3.1 billion worth of textile and apparel exports representing four percent rise over the same period last year.

Meanwhile, domestic sales of textiles and garments in the first quarter of 2007 elevated around five percent from the same period in 2006.

This figure is lower that the growth of seven percent in January-March 2006 as compared to the corresponding period in 2005.

This was probably due to surge of cheap imports, especially from China, which accounts for 37 percent of the local sales.

The government has set aside Rp255 billion in funds to up grade the technology on textile machines.

If the technology upgrading program is successful, the country`s textile and garment production would increase by nine percent.


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