API sees 2001 textile export to drop by 25%<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Textile Association (API) on Friday said it
\nexpected the country's 2001 textile export to decline by 25
\npercent from US$8.2 billion last year particularly due to an
\neconomic slowdown in the main U.S. market.<\/p>\n
\"The local textile industry is very sensitive to the slowdown
\nin the U.S economy because about 26.3 percent of its export goes
\nto this country,\" API executive director Indra Ibrahim told The
\nJakarta Post.<\/p>\n
Indonesia's textile export to the U.S. reached $2.1 billion
\nlast year. Textile is among of the country's major non-oil and
\ngas export products, and the sector employs a great number of
\npeople.<\/p>\n
Indra said that the prospect for 2002 remained gloomy as
\ntextile companies had yet to receive orders for January-April
\nshipment, which in normal times were usually made starting
\nOctober.<\/p>\n
\"We expect orders from the U.S. to significantly drop in the
\nfirst quarter of next year,\" he said.<\/p>\n
Indra, however, said that despite the declining export,
\ntextile companies would try to avoid laying off workers.<\/p>\n
He said that the companies would pursue other cost-cutting
\nmeasures such as reducing overtime work.<\/p>\n
\"They (textile companies) may decrease production first or
\nreduce overtime work in order to survive the difficult time,\" he
\nsaid.<\/p>\n
Elsewhere, Indra said that there had been a growing list of
\nlocal textile companies complaining of cancellation orders from
\nthe American buyers in the aftermath of the Sept. 11 terrorist
\nattacks on New York and Washington, which deepens the world's
\neconomic uncertainty.<\/p>\n
He said that the local textile firms were being forced to cut
\ndown their prices or would risk cancellation.<\/p>",
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