Prospects for the Textile and Clothing Industry in Indonesia

Released on = June 5, 2007, 3:56 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Indonesia is an important global source for textiles and
clothing. In 2004 it ranked tenth among the world's leading exporters of textiles
(excluding Hong Kong, whose domestic exports are small) and ninth among clothing
exporters (including Hong Kong). Within Asean (Association of Southeast Asian
Nations

Press Release Body = Prospects for the Textile and Clothing Industry in Indonesia

Executive Summary

Indonesia is an important global source for textiles and clothing. In 2004 it ranked
tenth among the world's leading exporters of textiles (excluding Hong Kong, whose
domestic exports are small) and ninth among clothing exporters (including Hong
Kong). Within Asean (Association of Southeast Asian Nations), it is the number one
exporter in both textiles and clothing. The textile and clothing industry is also
important to Indonesia as it contributes significantly to the country's economy.
Indeed, it is the largest provider of employment and a major source of export
earnings. The official employment estimate is 1.2 mn people, spread over 4,500
factories. But some believe that an additional 3.5 mn are employed directly or
indirectly in textile-related areas. Textile and clothing exports were worth
US$8,671 mn in 2005, representing 10.1% of the country's total exports. Furthermore,
textile and clothing exports in 2005 were 13.4% higher than in 2004. The Indonesian
textile and clothing industry is vertically integrated, encompassing almost every
stage of production. Indonesia has the largest share of spindles and looms among
Asean countries and its capacity ranks as the fourth highest in the world. The
industry has a number of strengths which should enable it to retain and even expand
its share of international markets. But it needs to implement an extensive
modernisation programme with some urgency. After 2008, when temporary safeguard
quotas against China will have come to an end, Indonesia can expect to feel the full
force of unfettered Chinese competition.


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