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Textile Industry will continue to Grow

Jakarta January 2019

Kegiatan Pabrik PT. SritexKegiatan Pabrik di PT. Sritex

The Industry Ministry firmly believe that Indonesian Textile Industry will continue to grow, triggered by new investments and good export performance. Director General of Textile, Leather, Chemical, Footwear and Multifarious Industry (IKTA), Achmad Sigit Dwiwahjono said that the by end of 2018, IKTA growth reached 3.4% and is predicted to grow by 3.6% - 4% in 2019.

Data from Investment Coordinating Board (BKPM) released by the Ministry of Industry shows that chemical, textile and apparel sectors are major contributors to investment. Textiles and clothing contributed Rp. 8.75 trillion in 2018. The impact of the American trade war - China which also applied to Chinese textiles and textile products opens opportunities for Indonesia to increase apparel exports to America given the size of China's apparel market share in the United States reaches 32%.

Minister of Industry Airlangga Hartarto explained that his party will increase export of IKTA sector ranging from clothing, textile and footwear industries including by trying to make a comprehensive economic cooperation agreement with the United States and the European Union to expand the export market

Meanwhile, export performance in 2018 is believed to achieve the target set in the previous year although official data has not been released, Business players in this sector of industry believe that exports are increasing or are likely to reach the target set by the government, amounting to US $ 13 billion. The efforts of government to expand trade cooperation with export destination countries will increase Indonesia's textile exports in the coming years.

To meet the rise of export, PT. Pan Brothers Tbk, plans to develop a factory located in Tasikmalaya, West Java this year. The Company Secretary Iswar Deni said that one of the expansions in 2019 was the development of PT. Teodore Pan Garmindo Tasikmalaya 2 with an investment of US $5 million with a capacity of 6 million pieces per year.

According to Izwar Deni, the company also continues to work on plans to build synthetic plant for raw materials to reduce dependence on imported raw materials, which so far the imported synthetic woven accounting for 70% to 80% of the total raw material requirements.