Indonesia's textile exports recover from setbacks<\/p>\n
JAKARTA (JP): Indonesia's exports of textiles and textile
\nproducts are recovering, after decreasing in the first half of
\nthe year, an executive of the Indonesian Textile Association said
\nyesterday.<\/p>\n
\"The recovery trend seems to be continuing because our records
\nindicate textile exports are increasing in the last quarter of
\nthe year. And I'm sure that our exports are likely to exceed US$6
\nbillion this year,\" the association's vice chairman, Chamroel
\nDjafri, told journalists.<\/p>\n
During the first quarter of this year textile exports dropped
\nby 26 percent to $1.6 billion.<\/p>\n
The rate of the export declines slowed down to only nine
\npercent to $3.26 billion during the first seven months of the
\nyear, Djafri said.<\/p>\n
He added that this year's exports might slightly exceed last
\nyear's figure of $6.06 billion but far below a target of $7
\nbillion.<\/p>\n
The chairman of the Textile Association's Jakarta chapter
\nHariyadi B. Sukamdani said the shabby performance of Indonesia's
\ntextile exports resulted from many impediments, including the
\nquota systems introduced by major importing countries, emergence
\nof new textile exporting countries and increasing costs for local
\ntextile production.<\/p>\n
\"Because of our high production costs, we lose our competitive
\nedge in the world market,\" Hariyadi said, adding that the most
\nburdening costs lie in the high interest rate on debts for
\nworking capital.<\/p>\n
Wages<\/p>\n
Hariyadi noted that government-set regional minimum wage
\nlevels have also raised production costs. \"Much more, the
\nMinistry of Manpower will soon raise wage standards. I'm afraid
\nthere will be some textile factories going out of business,\" he
\nsaid.<\/p>\n
He acknowledged that the productivity of Indonesian laborers
\nworking in the textile industry is still below par. \"We need to
\nimprove their productivity. And I will discuss this matter with
\nthe related ministries,\" he said.<\/p>\n
Also, the promotion of Indonesian textile products abroad has
\nnot been accomplished professionally, Hariyadi said.<\/p>\n
And so Indonesian textiles, whose quality is actually much
\nbetter than those from other countries, are not well known
\nabroad.<\/p>\n
He said problems related to the textile industry will also be
\ndiscussed at the coming, seventh, Indonesian Textile Association
\ncongress, to be conducted on Nov. 26 and 27.<\/p>\n
Minister of Finance Mar'ie Muhammad and Coordinating Minister
\nfor Industry and Trade Hartarto are scheduled to address the
\ncongress, which will also elect the association's board of
\ndirectors.<\/p>\n
The future of the textile industries will be the key issue
\nduring the two-day meeting, as the theme of the congress is
\nmaking textile and textile related products Indonesia's export
\npioneer for the new era of international trade competition.<\/p>\n
Djafri predicted that textile products will remain the
\nbackbone of the country's non-oil exports next year, when the new
\nGeneral Agreement on Tariffs and Trade (GATT) comes into effect.
\n(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesias-textile-exports-recover-from-setbacks-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}