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)