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