Sat, 11 Jul 1998

Textile exports rise in first quarter of '98

JAKARTA (JP): Exports of textile and textile-related products jumped 50.8 percent to US$2.46 billion in the first three months of this year from $1.63 billion in the same period last year, according to the Ministry of Industry and Trade.

Director of Exports Sudar S.A. said garment exports accounted for $559.23 million, with $324.42 million coming from woven products and $964.47 million from other textile products

The total volume of the exported textile products was 887.27 million square meters, up 15.3 percent from 769.51 million square meters.

The European Union was the largest buyer with 531.89 million square meters, followed by the United States with 345.86 million square meters, Canada with 9.46 million square meters and Norway with 59,560 square meters.

Sudar said the value of Indonesia's exports of textile and textile products to countries which imposed quotas in the first semester of this year reached $1.51 billion, up 9.19 percent from $1.39 billion last year.

Countries imposing import quotas which bought products from Indonesia during the period are the United States, with import values reaching $820.75 million, followed by the European Union, $656.38 million; Canada, $32.84 million; and Norway, $533,880.

Meanwhile garment producers in Bali have said they will run out of raw materials in the next two months, even though purchasing orders are continued to flow in.

Antara reported several garment producers in Bali are currently having to refuse orders from importers because of difficulties getting materials in sufficient amounts, especially cotton and rayon fabrics.

The shortage of materials was prompted by the closing down of many textile factories in Java since the monetary crisis struck last July because they could no longer afford to import the raw materials in the wake of the rupiah's depreciation.

The head of the provincial office of the ministry of industry and trade in Bali, I Ketut Gede Mendra, said many foreign buyers now supplied their own materials such as Japanese silk to the garment producers in the area to be made into clothes due to the scarcity of the raw materials in the province.

"If this situation continues, we will turn into mere tailors and only get service fees," Mendra said.

Export volumes of garments from Bali rose to 15.8 million pieces year-on-year in the January to May period this year from 10.9 million in 1997, while the export value dropped to $66.8 million from $73.8 million in the same period last year. (das)