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)