RI textile industry asks ASEAN for cooperation
The Jakarta Post, Nusa Dua, Bali
Indonesian textile industry has called on other members of the Southeast Asian (ASEAN) countries to set up a fair and healthy cooperation in the textile industry in order for the region to maintain its position or expand its share in the global market.
Sunjoto Tanudjaja, vice chairman in foreign affairs of the Indonesian Textile Association (API), told participants of the Industry Focus meeting of the ASEAN Business and Investment Summit on Sunday in Nusa Dua, Bali, that it was high time for all member countries to work together.
Otherwise, he said, they would be left behind by other regional groups of economic cooperation.
Indonesia, Malaysia, Thailand and Vietnam -- and now Cambodia and Laos -- are known as prolific garment producers exporting to traditional markets like the United States, European countries, Australia and newly emerging markets such as the Middle East and Africa.
Among their main competitors are India, China, Bangladesh, Turkey and Mexico.
Sunjoto said with an economic cooperation, ASEAN countries will be able to eliminate, for instance, trade barriers as well as high tariffs and duties.
Sunjoto did not provide details as to how the regional textile industry could cooperate. Industry players are expected to gather over several days during the summit to discuss the proposal further.
Bruce J. Howe, a representative of the Thai textile industry, said that country faced problems in exporting its textile products to developed nations.
"We still have problems in marketing our textiles and garments to the United States," he said.
Sunjoto, who is also president director and CEO of PT Great River International, said the regional textile industry was still facing crucial obstacles to becoming competitive and efficient.
Among the problems are labor, high tariffs and duties and governmental regulations, which are not conducive to the development of the industry.
The Indonesian textile industry, which now employs about 1.5 million people, generated around US$7 to $8 billion in export revenue annually over the past several years. Before the economic crisis, which hit the country in l998, the industry generated around $8.2 billion annually.
As the global market has become more challenging, Indonesia will benefit from the integration of the regional market starting with the launch of the ASEAN Free Trade Agreement (AFTA) early this year, which has turned ASEAN into a single, 500-million market.
The free market area will further expand in 2010 with the inclusion of South Korea, China and Japan. Also in 2010, the Asia-Pacific Economic Cooperation (APEC) is to being lowering tariffs on goods exported by low-income APEC members.
"As for post-2004, we believe both the Asian and ASEAN regions will still maintain higher economic growth and increasing purchasing power. Countries trading in this region will enjoy a greater flow of goods as these free trade areas take effect, both in the coming decade," Sunjoto said.
The dialog also focused on smuggled textiles and apparels entering ASEAN member countries.
Poppy Dharsono, vice president of the Indonesian Chamber of Commerce and Industry (Kadin), said hundreds of containers of textile and fashion items had been shipped to Indonesia.
"These illegal goods even come from ASEAN member countries," she said, but did not specify which countries.
She urged ASEAN members to settle these issues, including smuggling, before moving on to other issues.