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APSyFI: The national textile industry is headed for a trade deficit, 2018 exports grow 1% and imports grow 14% (yoy).--IKATSI: The growth of the national textile industry is still hampered by floods of imports, Indonesia needs a clothing security law.


	
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Domestic Market is Needs Government Alignments PDF Print E-mail
Written by editor   
Wednesday, 27 March 2019

Within 10 years textile industry performance continues to fall. The value of exports in 2018 around USD 13 billion only increase 1% (yoy) . While the domestic market, although the consumption of garments and other finished goods in the country rose from USD 16.2 billion by 2017 to $ 16.7 billion in 2018, but the portion of sales of domestic product is still only 75%, down considerably compared to 2013 with 86% for the domestic market is still gradually undermined imported products.

 

Even worse things happen at the fabrics manufacture, where products imported fabric control 50% of market share, whereas in 2013 only 30%, even in 2008 imported fabrics only control 20% of the domestic market. The result is felt mainly by the industrial sector weaving, knitting, where many companies have cut production, laid off some employees even shut down the company.

 

Global markets are still recovering would still be the main reason for the downturn in export performance. But the big question on the domestic market. Countries with a population of 260 million people where the economy is growing well enough to encourage the growth of consumption, precisely imported products controlled domestic market and do not make it as a guaranteed market for domestic products.

 

In almost all countries, especially countries with very large populations such as China, India, Turkey and Brazil, the domestic market serve as a guaranteed market for local products, so that the country would be more in favor of local products. Moreover, if the country has integrated textile industry from upstream to downstream then they will seek to protect its market from upstream to downstream in order to maintain the growth of the textile industry in their country.

 

As one of the countries with a very large population and integrated structure of textile industry from upstream to the downstream, Indonesia goverment is obliged to make the domestic market as a guaranteed market for local products from upstream downstream. Import is only done for goods that are not produced domestically. While export-oriented company providing facilities remain without disturbing other companies domestic market oriented.

 

 

(Editor)


 
		

		
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