Indonesia's textile exports recover from setbacks

Indonesia's textile exports recover from setbacks

JAKARTA (JP): Indonesia's exports of textiles and textile
products are recovering, after decreasing in the first half of
the year, an executive of the Indonesian Textile Association said
yesterday.

"The recovery trend seems to be continuing because our records
indicate textile exports are increasing in the last quarter of
the year. And I'm sure that our exports are likely to exceed US$6
billion this year," the association's vice chairman, Chamroel
Djafri, told journalists.

During the first quarter of this year textile exports dropped
by 26 percent to $1.6 billion.

The rate of the export declines slowed down to only nine
percent to $3.26 billion during the first seven months of the
year, Djafri said.

He added that this year's exports might slightly exceed last
year's figure of $6.06 billion but far below a target of $7
billion.

The chairman of the Textile Association's Jakarta chapter
Hariyadi B. Sukamdani said the shabby performance of Indonesia's
textile exports resulted from many impediments, including the
quota systems introduced by major importing countries, emergence
of new textile exporting countries and increasing costs for local
textile production.

"Because of our high production costs, we lose our competitive
edge in the world market," Hariyadi said, adding that the most
burdening costs lie in the high interest rate on debts for
working capital.

Wages

Hariyadi noted that government-set regional minimum wage
levels have also raised production costs. "Much more, the
Ministry of Manpower will soon raise wage standards. I'm afraid
there will be some textile factories going out of business," he
said.

He acknowledged that the productivity of Indonesian laborers
working in the textile industry is still below par. "We need to
improve their productivity. And I will discuss this matter with
the related ministries," he said.

Also, the promotion of Indonesian textile products abroad has
not been accomplished professionally, Hariyadi said.

And so Indonesian textiles, whose quality is actually much
better than those from other countries, are not well known
abroad.

He said problems related to the textile industry will also be
discussed at the coming, seventh, Indonesian Textile Association
congress, to be conducted on Nov. 26 and 27.

Minister of Finance Mar'ie Muhammad and Coordinating Minister
for Industry and Trade Hartarto are scheduled to address the
congress, which will also elect the association's board of
directors.

The future of the textile industries will be the key issue
during the two-day meeting, as the theme of the congress is
making textile and textile related products Indonesia's export
pioneer for the new era of international trade competition.

Djafri predicted that textile products will remain the
backbone of the country's non-oil exports next year, when the new
General Agreement on Tariffs and Trade (GATT) comes into effect.
(rid)