Deputy Industry Minister Asserts Textile Sector Resilience Amid Rupiah Volatility

Deputy Minister of Industry Faisol Riza assessed that the weakening of the rupiah exchange rate and stock market volatility have not had a significant impact on the textile and textile product industry. “There has been much talk lately about the rise in foreign currencies and the pressure on the rupiah making market conditions appear to greatly affect industries. However, we know that certain sectors are currently harvesting opportunities,” Faisol Riza stated. Faisol Riza conducted a visit to observe the production process at textile company PT Gajah Angkasa Perkasa in Bandung. The visit was part of a check on several industrial sectors, including textiles, amid public concerns regarding the impact of the rupiah’s depreciation and current capital market instability. “It appears the textile industry has good fundamentals and is almost unaffected by the weak or unstable rupiah exchange rate or the capital market. I also see that our national industry possesses strong resilience in facing globally unstable situations,” he explained. “We can compete with the prices of textiles produced by other countries, even at market prices. This is something to be proud of. Certainly, the government will also continue to support the textile industry in Indonesia,” the Deputy Minister stated. Furthermore, Riza encouraged the textile industry to leverage geopolitical challenges to boost export market expansion, notably through Indonesia’s trade agreement with Europe, which provides a 0 per cent import duty for Indonesian textile products. “The government is also regulating matters so that borders are truly strict. The President has ordered customs to become our economic strength by restricting illegal goods, those not meeting standards, and goods that damage the domestic market,” Deputy Minister Riza added. With a Domestic Component Level of 85 per cent, the company expressed optimism about adding more export destination countries, targeting markets including Saudi Arabia, Egypt, the United Arab Emirates, France, the United Kingdom, Spain, South Korea, Vietnam, Papua New Guinea, and Canada. “In the future, we hope to export finished goods, speciality items to become military and government uniforms in other countries.” In addition to uniforms, PT Gajah Angkasa Perkasa’s business lines also produce various garment products, including shoes, rank insignia, batik fabric, and footwear.