Textile producers need to improve efficiency: Association
Textile producers need to improve efficiency: Association
The Jakarta Post, Nusa Dua, Bali
The Indonesian Textile Association (API)'s head of
international relations, Sunjoto Tanudjaja, said that the planned
termination of the current textile quota system next year would
not seriously damage the country's textile exports as
international markets were set to expand with the introduction of
the policy.
He explained that only around 20 percent of the country's
textile exports, which are expected to reach around $8 billion
this year, would be affected by the quota elimination. The
country's total textile production is valued at more than $15
billion.
But according to an estimate from the European Union, the
global market for textiles and garment products is projected to
increase to around $400 billion in 2005 from $350 billion this
year once the quota system is ended.
He said that the quota elimination was actually in line with
the demand of the association, which for years had been
consistently seeking greater market access for the country's
textile products.
He said on Sunday that in order for the local players to take
advantage of the growing market, the local textile industry must
improve its competitiveness.
"The government must help by improving the investment climate
here," he told reporters on the sidelines of an industry dialogue
held at the ASEAN business and investment summit.
He pointed out that the government must quickly complete the
new investment law, amend the labor law, accelerate tax reform
and take other necessary measures to improve the unfavorable
business climate.
The U.S., Europe, and Canada decided in May to end the current
textile quota system at the end of next year to meet a World
Trade Organization ruling.
Textile producers from developing countries have been able to
continue exporting despite rising competition because of the
quota system. When the system ends, inefficient producers, which
have benefited from the quota system, will be sidelined.