The Indonesian textile industry is an export-oriented labor-intensive sector and believed that the value of national textile and textile product (TPT) exports will grow rapidly in the next two years. Ministry of industry Airlangga Hartanto said that the Indonesia textile exports is projected to touch USD 15 billion by 2019 and likely to employ 3.11 million people. By then, the sector’s annual production capacity will rise to 1,638 tonnes.
The industry ministry predicted that textile and textile products exports will grow around 11 percent annually. The sector is estimated to contribute $12.09 billion to the economy in 2017 and $13.5 billion in 2018. By 2017 end, this sector can absorb up to 2.73 million workers, and increase that to 2.95 million in 2018.
Hartanto at the International Textile Manufacturers Federation (ITMF) Conference held in Nusa Dua, Bali, recently urged industry players to utilize digital technology, such as 3D printing and automation, to turn competitive and efficient.
Hartarto is optimistic the national textile industry can compete globally because, this sector has been integrated from upstream to downstream and its products are known to have good quality in the international market.
To achieve the target, new investment and expansion in every sector of textile industry is needed. The government is focused on creating a conducive investment climate by issuing policies that could facilitate industry players in trying in Indonesia, for example, facilitating the provision of fiscal incentives in the form of tax allowance and tax holiday.
To expand their export market the government is also working to establish cooperation agreements with the United States and the European Union. The import duty of Indonesian textile products is still subject to 5 to 20 percent in the US, while Vietnam’s exports to America and Europe are zero percent.
According to ITMF general director Christian Schindler, Indonesian textile industry has the potential to accelerate the stable growth observed in the last few years with a better and more investor-friendly business climate.
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