Textile exports expected to keep declining<\/p>\n
JAKARTA (JP): Indonesia's textile exports, which started
\nfalling in the forth quarter of last year, will likely continue
\ndeclining in the coming months due to decreased competitiveness
\nof its products and weaker demand in industrial countries.<\/p>\n
"We have proposed measures to boost our textile exports and
\nwill discuss them intensively with officials of various
\ngovernment institutions," Chairman of the Indonesian Textile
\nAssociation (API) Handoko Tjokrosaputro told reporters after
\nmeeting with President Soeharto at Bina Graha yesterday.<\/p>\n
He said Indonesia's exports of textiles and textile products
\ncontinued increasing in the first nine months of last year "but
\nthey fell sharply in the following four months."<\/p>\n
Handoko met with Soeharto to invite him to open the 10th
\nconference of the International Apparel Federation (IAF) in Bali
\nin the middle of June.<\/p>\n
The June 14-June 15 meeting is expected to attract 500
\nparticipants from various countries in Asia, Europe and America.<\/p>\n
Handoko, who was accompanied by API executives, said he was
\nconcerned over the decline in textile exports, which have been
\nthe country's main earner of foreign exchange.<\/p>\n
Price falls<\/p>\n
Ministry of Trade data say Indonesia's exports of fabrics,
\nyarns and other textile materials increased by 20 percent in
\nvolume to 441,240 tons last year from 367,560 tons in 1992, but
\nthe 22.5 percent decline in prices caused the export value to
\ndecrease by seven percent to US$2.63 billion from $2.83 billion.
\nExports of garments rose 17.8 percent to 227,690 tons from
\n193,210 tons but the 6.1 percent decline in prices caused their
\nvalue to increase only by 10.6 percent to $3.5 billion from $3.16
\nbillion.<\/p>\n
All in all, Indonesia's revenue from exports of textiles and
\ntextile products increased by 2.2 percent to $6.13 billion last
\nyear from $6 billion in 1992.<\/p>\n
Handoko acknowledged that the emergence of new textile
\nexporters -- China, Vietnam, Bangladesh, Pakistan and India --
\nhas increased competition on the world market.<\/p>\n
Recession in some industrial countries put more pressure on
\nthe prices of textiles and garments.<\/p>\n
He said Indonesia should take measures to reduce the costs of
\ntextile production and to improve quality if they want to
\ncontinue increasing exports.<\/p>\n
There is no problem with the labor costs for textile
\nproduction but other costs have reduced the competitiveness of
\nIndonesian products, he said.<\/p>\n
Textile company executives said recently that invisible costs,
\nparticularly bribes for government officials to facilitate
\nbusiness licensing and export procedures, have substantially
\nraised production costs in Indonesia. (riz)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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