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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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Growth of Textile and Clothing Industry in Indonesia is The Highest PDF Print E-mail
Written by Maizer   
Friday, 10 May 2019

The textile and clothing industry has made a brilliant performance in  first quarter of 2019. During the three months, the highest growth in the textile and apparel industry reached 18.98 percent. The number increased significantly compared to the same period last year at 7.46 percent and also increased from the acquisition in 2018 of 8.73 percent.


Data from the Central Statistics Agency (BPS) also shows that production of large and medium manufacturing industries (IBS) in the first quarter of 2019 rose 4.45 percent compared to same period last year. The increase in IBS production was sustained by the production of apparel industry sector which skyrocketed to 29.19 percent due to the abundance of orders, especially from the export market.


"The textile and textile products (TPT) industry is one of the mainstay sectors because it contributes greatly to the national economy. Moreover, the textile industry is a sector that is classified as labor-intensive and export-oriented, "said the Ministry of Industry's Director of the Textile, Leather and Footwear Industry, Muhdori.


According to Muhdori, the high growth that occurred in textile industry, mainly due to the existence of substantial investments in the upstream sector, especially rayon producers. This can be seen from the operation of PT Asia Pacific Rayon (APR) in Riau at the end of 2018, with an investment of Rp11 trillion. The plant adds a production capacity of 240 thousand tons per year, half of which is oriented to the needs of the export market.


"That led to an increase in exports. In addition, supply from upstream is increasing, also encouraging performance to the downstream and intermediate industries so that cumulatively the industry gets more excited. This is marked by TPT exports which rose 1.1 percent in the first quarter of this year, "he explained.


Then, with the existence of a control policy on imports carried out by the government since February 2017, it also had a positive impact on decline in imports which reached 2.1 percent in the first quarter of 2019. "The decline in imports also had an impact on the trade balance surplus which also rose," he added.


Furthermore, increasing the productivity of the textile industry is also supported through various vocational education and training activities conducted by the Ministry of Industry. This program creates competent and productive industrial human resources. In fact, there was also the momentum of general elections some time ago, which some textile industry players produced attributes for the campaign.


"TPT consumption is also believed to continue to increase along with population growth and lifestyle changes. In taking advantage of this opportunity, national textile industry players must work hard to improve productivity, quality and efficiency through the application of more modern technologies in accordance with the digital era, "Muhdori said.


Based on the road map of Making Indonesia 4.0, the textile industry is one of the five manufacturing sectors that are prioritized in developing towards the industrial era 4.0. The big aspirations that will be realized are making national textile and apparel producers into the top five in the world by 2030.


"To make it happen, our textile industry needs to transform by optimizing the use of digital technology, such as 3D printing, automation, and internet of things," he said. This transformation is believed to be able to boost productivity and quality efficiently, and be able to build TPT industry clusters that are integrated with industrial 4.0 connected technology.



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