The business of Indonesia textiles and textile products was hampered by smuggling or illegal imports of used clothing in some parts of Indonesia, but the government of Indonesia is set to take firm action against these activities that hinder the growth of the manufacturing industry.
As strengthening the textile industry is very important because it is one of the manufacturing products that is recommended for increase in the interest of developing national exports. The government will continue to make every effort to strengthen and improve the textile industry and textile products to remain competitive.
Finance Minister Sri Mulyani Indrawati said that they will act against illegal imports of textile and textile products and the importers who have been misusing the facilities provided by the customs and excise department. She would also be inviting the relevant ministries and institutions to review the rules on textile imports, which are still conflicting, overlapping, and incompatible with the needs of society, trade, and industry.
Currently, the textile manufacturing industry is a labor-intensive one that absorbs a lot of labor and even creates new jobs in the distribution and trade sector.
According to Indonesian export trade statistics, in 2016 textile commodities contributed 9.61 percent to the total export value for non oil and gas products, or the second highest after palm oil exports.
The president stated that various policies would continue to be pursued to support the domestic textile industry in remaining competitive. With regard to the global market, the president acknowledged that today, Indonesia is still inferior to Vietnam, especially in the markets of Europe and the United States.
But the Indonesias textile industry will continue to grow in the years to come and has sufficient quality to compete in the world market because it is now equipped with modern and sophisticated technology.
In addition, the Indonesian domestic textile market also has vast potential while targeting its population and has the market opportunity to meet the demand for textile products in many countries around the world. In the next 10 to 15 years, competition in the world textile market will give Indonesia a broader market share.
Amidst the current textile competition, the Chinese textile market, which covers many countries around the world, has experienced a decline in global exports in recent years. This decline was a good opportunity for Indonesia to increase its capacity and expand its textile market across the world.
Seeing the promising and prospective textile industry in the country, investors from the China Jiangsu Dongqun Investment Holding Group Co., Ltd have expressed interest in developing the textiles and textile products industry in Indonesia, with an investment of US$100 million.
Indonesia will certainly welcome the interest shown by these investors, Industry Minister Airlangga Hartanto noted in a press release here recently.
Airlangga also presented several prospective locations for investment, such as the Kendal Industrial Area in Central Java, taking into account the size of the land plots and the skilled labor available.
The Ministry of Industry is accelerating the development of the Kendal Industrial Zone to boost the national textile industry and improve its competitiveness. The Kendal Industrial Zone is expected to offer added value and to boost the competitiveness of textile products in the domestic market and abroad.
A Fashion City will be built in the industrial zone on a 100-hectare plot of land. The Fashion City will have several facilities, such as a center providing raw materials, a shopping center, exhibition hall, and a textile research and development center.
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