Indonesian firms entering into specialty textile market

Indonesia’s many big firms have started investing in the specialty textiles segment to push up production in specialty textiles or fabrics for special purposes, such as sofa and shoes to fulfil national demand amid the country’s dependence on the import of these materials, said Prama Yudha Amdan, the executive member of Indonesian Association of Synthetic Fiber Producers (APSyFI).

Publicly listed PT Asia Pacific Fibers is one company that has entered this market.

Yudha added that specialty textiles need bigger investment in comparision to common textiles, hence important that the government lower gas prices, electricity tariffs and labor costs in Indonesia that remain higher than rivals China and India to keep the investment going.

Indonesia’s gas price, at US$9 per million British thermal units (mmbtu), for example, is among the highest in the world. APSyFI urged the government to lower it to $6 per mmbtu as energy contributed to 25 to 30 percent of production cost structure in upstream textile industries.

According to Indonesian Society of Interior Designers (HDII), earlier, the volume and variety of local specialty textiles to make furniture, accessories and shoes were still limited. Now about 60 percent of furniture materials including textiles are still imported,