Textile exports decline in 2000

Textile exports decline in 2000

JAKARTA (JP): Indonesia's textile export revenue this year is
estimated to reach only US$7.3 billion, down from last year's
$7.5 billion and well short of the $8 billion target, according
the Indonesian Textile Association (API) on Tuesday.

Outgoing general secretary Irwandy Muslim Amin attributed the
decline to falling orders from the United States and Europe,
which are also Indonesia's largest export markets.

In contrast, exports to the so-called non-quota markets
increased during the year by 20 percent, with the biggest demand
coming from the Middle East and North Africa.

"Exporters must penetrate these markets more aggressively to
anticipate the declining trend in the U.S. and Europe next year,"
Irwandy stressed.

He said exports next year would remain stagnant because of the
trends in the U.S. and Europe, and also because of the impact of
the unstable political situation in Indonesia.

The unfavorable economic conditions at home contributed to
this year's falling exports, Irwandy said.

He cited the difficulties experienced by companies obtaining
loans because banks were insisting that they must have zero debts
to qualify for credits.

Even if companies were able to obtain loans, the interest
rates were prohibitively high, especially compared to those in
China, one of Indonesia's main competitors in the international
textile trade, he said.

He also blamed the 30 percent hike in shipping rates this year
for the decline in exports.

"The economic conditions at home must be improved if we want
to compete with others," Irwandy said.

The Central Bureau of Statistics reported earlier this month a
30 percent increase in total exports in the January to October
period to US$51.59 billion. (05)