RI textile exports set to increase<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian Textile Association (API) said on Wednesday
\nthat export revenue from textiles this year would increase to
\nUS$8 billion from $7.6 billion last year.<\/p>\n
Meanwhile, the Indonesian Footwear Association (Aprisindo)
\nsaid the country's shoe exports would drop slightly by 6.25
\npercent to $1.5 billion this year, as some overseas buyers had
\nbegun turning their orders to other countries such as China and
\nVietnam, which offer lower prices.<\/p>\n
API executive director Indra Ibrahim attributed the projected
\nrise in textile exports to \"aggressive marketing efforts\" from
\nproducers, better government policy and the recovery of the U.S
\neconomy in the second half of this year. He did not elaborate.<\/p>\n
U.S. is Indonesia's largest export destination.<\/p>\n
\"With all these conditions, I'm quite optimistic the country's
\ntextile exports will recover this year,\" he was quoted by Antara
\nas saying.<\/p>\n
API said that the domestic textile industry had been hit by
\nvarious uncertainties last year, including the world economic
\nslowdown.<\/p>\n
The association said riots and labor strikes at home had
\ntriggered foreign buyers to delay their orders, while several
\nbuyers shifted their orders to other countries.<\/p>\n
Government policies had also been seen as discouraging,
\nparticularly on the government decision to raise fuel prices,
\nelectricity rates and the minimum wage.<\/p>\n
API said that many textile companies had also not been able to
\nrenew their old machinery due the lack of working capital.<\/p>\n
At the same time, demand from buyers has been sluggish
\nfollowing the U.S. economic slowdown, which was worsened by the
\nSept. 11 terrorist attacks on the U.S.<\/p>\n
The $7.6 billion textile exports in 2001 was a drop from $8.2
\nbillion in 2000.<\/p>\n
Separately, Aprisindo chairman Harijanto said overseas shoe
\nbuyers, particularly from the U.S., had begun shifting their
\norders to China and Vietnam due to the non-conducive business
\nsituation at home.<\/p>\n
He added the entry of China to the World Trade Organization
\n(WTO) had boosted China's competitiveness, but caused Indonesian
\nproducts to become less competitive.<\/p>\n
\"Our products are now 12 percent more expensive than those
\nfrom China and 20 percent higher in price than those from
\nVietnam,\" he said at a hearing session with the House of
\nRepresentatives Commission V on industry and trade affairs.<\/p>\n
Hariyanto said that the shoe industry had also been badly
\naffected by the increase in fuel prices, electricity rates and
\nminimum wage.<\/p>\n
\"If the government doesn't issue favorable polices for the
\nsector, I'm certain that exports will decline and many companies
\nwill have to shut their factories down in the next three to four
\nyears.\"<\/p>\n
He feared that many foreign investors in the sector would soon
\nrelocate their factories to China and Vietnam.<\/p>\n
He also said that the government should accelerate the
\nrestructuring of debts owed by shoe companies to allow them to
\nseek bank loans for working capital.<\/p>\n
The country's shoe exports reached $1.6 billion last year and
\n$2 billion in 2000.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-textile-exports-set-to-increase-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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