Indonesian Political, Business & Finance News

Untrendy Indonesia not a hit in Japan

| Source: JP

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.

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