Indonesia Reduces Textile Export Targets

The Indonesian Textile Industry Association (API) said recently that the textile industry has decided to revise this year’s export index from the original US$13.6 billion to US$13.1 billion, taking into account the negative impact of the current economic downturn in Europe and the United States.

API General Ade said that in September this year, Indonesian textile export enterprises have already felt the adverse effects of economic turmoil in Europe and the United States. According to the results of the API survey, export orders of major textile companies fell by an average of 1% to 2%. As for the Indonesian textile industry's export targets next year, Ade said frankly that due to the uncertainty of the world economy, it is impossible to estimate the market conditions for the next year. However, it is expected that Indonesia's textile industry will increase its export growth by less than 10% next year.

Ade said that the export growth will still be due to some orders from Europe and the United States market, will gradually turn to China, Thailand, Vietnam, Cambodia, Bangladesh, Pakistan, India and Sri Lanka and other Southeast Asian countries. He believes that the government must take measures as soon as possible to help the development of the industry, for example, to improve the competitiveness of domestic businesses and ensure the energy supply of production companies. In addition, the government should step up discussions with the EU and Australia on the relevant free trade agreements.