Indonesia's textile exports expected to surge 15 percent
Indonesia's textile exports expected to surge 15 percent
JAKARTA (JP): The value of Indonesia's exports of textiles and
textile products is expected to rise by about 15 percent to
US$3.43 billion in the first semester from $2.98 billion in the
corresponding period of last year, the Indonesian Textile
Association said on Monday.
The association's secretary-general, Irwandy Muslim, told The
Jakarta Post that the increase would be generated by foreign
buyers' decisions to speed up their imports before the June 7
general election.
"Most foreign buyers increased their orders for deliveries
during the first five months of this year because they want
deliveries to be completed before the general election," he said.
Foreign orders for winter clothes, usually placed in
September, have been filed, he added.
Exports in January reached $416.4 million, an increase from
$395 million in the same month last year.
But Irwandy said the increase in orders in the first semester
would not result in lower exports in the second semester of this
year.
"Orders will likely slow down in June but it will increase
again in the months after the elections, especially if the
general election runs smoothly," he said.
He said many companies had secured orders from foreign buyers
for the next six months.
"Some buyers are still optimistic because political upheavals
of a worse scale also happen in several other parts of the
world," he said.
Irwandy said most of Indonesia's traditional buyers would
remain loyal.
"They acknowledge that the quality of our fabrics is one of
the best in the world. If they want to buy from other sellers
they have to bear additional costs for checking their quality to
ensure that it is at least as good as ours," he said.
He attributed the export increase also to new Indonesian
players in the international market.
"Many textile producers which previously mainly concentrated
on the domestic market, which is now depressed, have started
promoting sales overseas. They are aggressively looking for new
markets, especially countries which do not impose quotas," he
said.
Irwandy said Indonesia's exports of textiles and textile-
related products reached about $7.8 billion last year, a slight
increase from $7.3 billion in 1997.
Indonesia's textile exports have been shipped to 130 countries
this year, compared to 85 countries in 1990, Irwandy said, adding
that the most important markets are Europe and the United States.
Irwandy predicted that Indonesia's textile exports could reach
between $10 billion to $12 billion after the turn of the century.
The association projects exports to reach $8 billion this
year.
"But this will depend on the government's ability to provide
adequate trade financing," Irwandy said.
The government plans to establish an export financing agency
to help exporters, but no information was immediately available
as to when this agency would open. (gis)