Adianto P. Simamora
\nThe Jakarta Post
\nJakarta<\/p>\n
The country's export revenue from textile and textile products
\nis expected to decrease by 10 percent this year from US$7.6
\nbillion last year because local products cannot compete in export
\nmarkets, according to the Indonesian Textile Association (API).<\/p>\n
Associate chairman Benny Soetrisno said that many buyers in
\nthe world's largest textile markets -- the United States and
\nEurope -- had switched to products made in other countries
\nbecause the prices of Indonesian textiles had become less
\ncompetitive.<\/p>\n
\"We can't compete in those markets anymore, our products are
\nnow more expensive than in other countries,\" Benny told The
\nJakarta Post over the weakened.<\/p>\n
Indonesian textiles and textile products have become more
\nexpensive because the industry mostly uses antiquated production
\nequipment.<\/p>\n
Indonesia booked a record Rp 8.2 billion in the exportation of
\ntextiles and textile products in 2000, but exports slipped to
\n$7.6 billion the following year.<\/p>\n
API earlier predicted this year's textiles exports would reach
\n$8 billion after Minister of Industry and Trade Rini Soewandi
\nannounced that the industry would be included in the government's
\nrevitalization program announced last February.<\/p>\n
Under the planned program, the government was to help secure
\nfunds to the ailing textile industry to upgrade dated machinery
\nso that manufacturers could boost production and improve
\nefficiency.<\/p>\n
However, the program has not run as expected because the
\ngovernment has failed to seek new investors to fund the program.<\/p>\n
Domestic banks, meanwhile, are reluctant to provide capital,
\nworrying that manufacturers will not be able to repay their
\ndebts.<\/p>\n
API said that about 60 percent of the existing textile
\nmachinery was more than 15 years old, which increased production
\ncosts.<\/p>\n
\"With such facilities, it will be difficult for Indonesia to
\ncompete with other countries, such as China, Thailand and other
\nASEAN countries,\" he said.<\/p>\n
Benny also said the recent increase in fuel prices,
\nelectricity rates and the minimum monthly wage had further
\nundermined Indonesia's textile export performance, as they
\nincreased the financial burdens of many companies and pushed up
\nthe prices of their products.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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