Textile export target lowered from $12b to $10b
Textile export target lowered from $12b to $10b
KARAWANG, West Java (JP): Slow export growth has forced the
government to scale back the country's textile export target from
US$12 billion per annum to $10 billion by the end of the Sixth
Five Year Development Plan period in 1999, a minister said.
Minister of Industry and Trade Tunky Ariwibowo said yesterday
that Indonesia's exports of textiles and textile-related products
are facing more competition from exporters of similar products
and protectionist measures in importing countries.
Tunky was speaking at the opening ceremony of PT Toyobo
Knitting Indonesia's fabrics plant at Karawang International
Industrial City.
The minister said that to reach the revised target of $10
billion, the government plans to provide more export facilities,
improve trade diplomacy with importing countries and streamline
bureaucratic procedures.
"We have to reduce inefficiencies in plants as well as
government bureaucracy," explained Tunky.
New investments totaling at least $4.9 billion will be needed
if Indonesia is to reach the target, he said.
The Indonesian Textile Association said recently that the
export growth rate of Indonesian textiles and textile-related
products has fluctuated in the past several years.
The value of textile exports increased from $5.9 billion in
1992 to $6 billion in 1993 but fell to $5.6 billion in 1994
before recovering to $6 billion in 1995. Textile exports grew
10.36 percent in the first quarter of 1996.
"We hope textile exports will grow 11 percent for the whole of
1996," he said.
The textile industry is still attractive to investors, he
said, citing 177 new investments in 1994, 158 in 1995 and 46 in
the first half of 1996.
Great River
Toyobo Knitting Indonesia is jointly owned by Toyobo Co. Ltd
of Japan (with a 60 percent stake) and two Indonesian companies
-- PT Great River International Indonesia (32 percent) and PT
Golden Castle (8 percent).
The plant was built on a 31,000-square-meter area with an
investment of $10 million. With an annual production of 240 tons
of fabrics, the company hopes to export $100 million worth over
the next two to three years.
Tunky called on PT Great River Industry, the license holder of
50 international brands, to produce its own brands, increase its
use of domestically-produced raw materials and accessories,
promote subcontracting and help small-scale textile firms by
allowing their products to be sold in its outlets.
In a related development, State Minister of
Investment/Chairman of Investment Coordinating Board Sanyoto
Sastrowardoyo dedicated yesterday the production unit of PT Great
River Industry in Purwakarta, West Java.
The company has its first and second production units in
Cibinong and Cikarang, respectively.
The third plant, built on a 35-hectare plot, will produce
women's underwear for Triumph as well as children's clothing and
casual dresses. (jsk)