Untrendy Indonesia not a hit in Japan

By Sylvia Gratia M. Nirang

TOKYO (JP): Japanese traders are reluctant to import Indonesian clothes, which are seen as unfashionable here, a visiting Indonesian minister said.

"Japanese importers told me they preferred to import from other countries because Indonesia's garment products were often out of mode and unfashionable," Minister of Industry and Trade Rahardi Ramelan said after meeting with Japan's major textile and garment importers.

The minister said many Japanese traders bought Indonesian textiles, which are known for their quality, but processed the fabrics in China before shipping them to Japan.

"This indicates that selling clothes in Japan is still promising for Indonesia. We can grab the potential market here if we are able to follow the fashion trends," he said.

Rahardi said Indonesian textiles and textile products accounted for only 6 percent of Japan's total textile imports.

"Our garment exports alone are only 2.1 percent of Japan's total clothes imports," he said.

Rahardi attributed the low exports to the inability of Indonesian producers to follow the fashion trade in the Japanese market.

The Japanese textile and textile product market is one of the largest in the world, generating sales of some US$16 billion annually.

"Indonesia has an opportunity to further expand its share in the Japanese garment market if our producers can better adjust to market tastes," he said.

Rahardi said exporting finished products such as clothes would give higher added value to Indonesia because it would not only generate more foreign exchange but also would create more jobs at home.

Rahardi lead a trade and investment delegation to Japan from May 10 to May 13. During his four-day visit, the minister met with Japanese government officials, executives at financial institutions and textile, electronic and automotive importers.

He met with executives from Japanese textile importers Marubeni, Sumitomo, Tomen, Mitsui, Itochu and Mitsubishi to encourage them to buy more Indonesian products.

Rahardi said Indonesia would export textiles to 130 countries this year, compared to 85 countries in 1990.

Indonesia's textile and textile product exports reached $7.79 billion in 1998. This year, textile exports are expected to rise by 1 percent to $7.87 billion.

Rahardi predicted Indonesia's textile exports could reach between $10 billion and $12 billion after the turn of the century.

The most important markets for Indonesian textiles are Europe, with an annual textile trade of $50 billion, and the United States, with an annual textile trade of $47.7 billion.

"In addition, there are also potential markets such as Thailand, Korea, Turkey and others," he said.

Rahardi said Japanese importers also urged the Indonesian government to eliminate restrictions on the import of Indonesian textiles and textile products.

"I told them the government is currently preparing a new textile policy in order to create a more competitive market and enhance the competitiveness of our products," he said.