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'Demand for Indonesian textiles & garments still high' - Mr Ismi

14
Oct '08
Indonesia has a very promising textiles and garment industry. Though the growth rate is a little bit less compared to double digit growth rates achieved by its Asian counterparts like Vietnam, Bangladesh and India, it is slowly inching up its exports bit by bit.

But since the last few months, the economic turmoil in the US has brought crashing down projected growth rates of a lot of countries with respect to the textile and garment sector. China is one among the biggest exporters to have bore the full brunt of the financial crisis.

Fibre2fashion spoke to the Secretary Executive of the Indonesia Textile Association, Mr EG Ismy who displayed a positive characteristic quite opposite to his Asian counterpart associations. Mr. Ismy said “Demand for Indonesian textiles and garments are still high, due to which there has been no major reduction in production.”

He added “The need of the hour is to enhance the potential market size of South East Asia which accounts for only 7 percent of worldwide share while US accounts for 36 percent.”

Commenting on the crisis he said “The main problems have arisen due to liquidity in the banking and financial sector, rising interest and exchange rates.”

Indonesia is counted among the top five apparel exporting countries to the US.

Indonesia exported textiles worth US $5.11 billion in the first six months compared to $4.83 billion in the same period of 2007 to post a gain of 5.87 percent while it shipped apparel amounting to $3.08 billion and $2.89 billion in the same periods of 2008 and 2007 respectively to record a growth rate of 6.48 percent.

Despite the positive and optimistic outlook of Mr. Ismi, it is the next few months and the beginning of the main buying season that will give the correct picture.

Fibre2fashion News Desk - India


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