Textile export target lowered from $12b to $10b<\/p>\n
KARAWANG, West Java (JP): Slow export growth has forced the
\ngovernment to scale back the country's textile export target from
\nUS$12 billion per annum to $10 billion by the end of the Sixth
\nFive Year Development Plan period in 1999, a minister said.<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo said yesterday
\nthat Indonesia's exports of textiles and textile-related products
\nare facing more competition from exporters of similar products
\nand protectionist measures in importing countries.<\/p>\n
Tunky was speaking at the opening ceremony of PT Toyobo
\nKnitting Indonesia's fabrics plant at Karawang International
\nIndustrial City.<\/p>\n
The minister said that to reach the revised target of $10
\nbillion, the government plans to provide more export facilities,
\nimprove trade diplomacy with importing countries and streamline
\nbureaucratic procedures.<\/p>\n
"We have to reduce inefficiencies in plants as well as
\ngovernment bureaucracy," explained Tunky.<\/p>\n
New investments totaling at least $4.9 billion will be needed
\nif Indonesia is to reach the target, he said.<\/p>\n
The Indonesian Textile Association said recently that the
\nexport growth rate of Indonesian textiles and textile-related
\nproducts has fluctuated in the past several years.<\/p>\n
The value of textile exports increased from $5.9 billion in
\n1992 to $6 billion in 1993 but fell to $5.6 billion in 1994
\nbefore recovering to $6 billion in 1995. Textile exports grew
\n10.36 percent in the first quarter of 1996.<\/p>\n
"We hope textile exports will grow 11 percent for the whole of
\n1996," he said.<\/p>\n
The textile industry is still attractive to investors, he
\nsaid, citing 177 new investments in 1994, 158 in 1995 and 46 in
\nthe first half of 1996.<\/p>\n
Great River<\/p>\n
Toyobo Knitting Indonesia is jointly owned by Toyobo Co. Ltd
\nof Japan (with a 60 percent stake) and two Indonesian companies
\n-- PT Great River International Indonesia (32 percent) and PT
\nGolden Castle (8 percent).<\/p>\n
The plant was built on a 31,000-square-meter area with an
\ninvestment of $10 million. With an annual production of 240 tons
\nof fabrics, the company hopes to export $100 million worth over
\nthe next two to three years.<\/p>\n
Tunky called on PT Great River Industry, the license holder of
\n50 international brands, to produce its own brands, increase its
\nuse of domestically-produced raw materials and accessories,
\npromote subcontracting and help small-scale textile firms by
\nallowing their products to be sold in its outlets.<\/p>\n
In a related development, State Minister of
\nInvestment\/Chairman of Investment Coordinating Board Sanyoto
\nSastrowardoyo dedicated yesterday the production unit of PT Great
\nRiver Industry in Purwakarta, West Java.<\/p>\n
The company has its first and second production units in
\nCibinong and Cikarang, respectively.<\/p>\n
The third plant, built on a 35-hectare plot, will produce
\nwomen's underwear for Triumph as well as children's clothing and
\ncasual dresses. (jsk)<\/p>",
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