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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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Throughout 2019, the Leading Industry Sector Grows PDF Print E-mail
Written by Maizer   
Thursday, 06 February 2020

The textile and apparel industry showed a brilliant performance throughout 2019 by recording a growth of 15.35%. This achievement shows progress that continues to improve amid pressure from global economic conditions. Significant growth in the textile and apparel industry sector was supported by increased apparel production in industrial centers.


"Based on the Making Indonesia 4.0 road map, the textile and apparel industry as one of the five manufacturing sectors is a priority in its development. Especially in the readiness to enter the industrial era 4.0, because with the use of industry technology 4.0, it will encourage an increase in the productivity of the industrial sector more efficiently, "said Minister of Industry Agus Gumiwang Kartasasmita in Jakarta.



The Minister of Industry revealed, the textile and testile products industry sector (TPT) also recorded export values ​​throughout 2019 which reached USD12.9 billion. As one of the labor-intensive sectors, the sector has absorbed a workforce of 3.73 million people.



Therefore, the Ministry of Industry undertook several steps to continue to improve the performance of the sector, including by encouraging expansion of market access and restructuring of machinery and equipment. "So, to boost the competitiveness of the textile industry, many things are being spurred on by us. For example, facilitating the availability of raw materials and energy supplies, "he said.



Other non-oil and gas industry sectors that also grew optimally in 2019 were the paper industry, and goods from paper, printing and reproduction of recording media by 8.86% which was in line with the increase in foreign demand. Furthermore, the chemical, pharmaceutical and traditional medicine industries were 8.38%, whose growth was driven by an increase in the production of chemicals, chemical products, and pharmaceutical products, chemical drugs and traditional medicines.



Then, the furniture industry reached 8.35% which was influenced by an increase in foreign demand, thereby encouraging export growth. Meanwhile, the food and beverage industry with a stable growth of 7.78%, supported by increased production of Crude Palm Oil (CPO) or crude palm oil.



As stated by the Central Statistics Agency, the global economy in Quarter IV-2019 is estimated to be still weak and unstable due to the still weak global trade and investment. Cumulatively, Indonesia's economic growth in 2019 grew by 5.02% compared to 2018.



Ministry of Industry Optimistic



Agus is optimistic about the economic growth target, and the performance of the country's manufacturing industry that will continue to improve, even able to reach the growth target of 5.3%. Especially if it is supported by setting gas prices for industries expected to be a maximum of USD6 per million metric British thermal units (MMBTU).



"Previously, we conveyed seven issues in the industrial sector that must be followed up, if the issue of gas prices for industry could be resolved, the government was optimistic about the growth target of the industrial sector," said the Minister of Industry.



The Minister of Industry said, besides that the contribution of the Gross Domestic Product (GDP) of the non-oil and gas manufacturing sector to the total GDP in 2019 reached 17.58%. This figure shows that the industrial sector continues to consistently provide the largest contribution to the national economy.



"Moreover, industrial activity has broad double effects for increasing the added value of domestic raw materials, absorption of local labor, and foreign exchange earnings from exports," he said.



Meanwhile, industrial sector exports in January-December 2019 were recorded at USD126.57 billion and accounted for 75.5% of Indonesia's total exports. The five sectors that contributed the most to the achievement of the export value of the manufacturing industry in 2019 were the food industry which deposited up to USD27.16 billion or contributed 21.46%.



Furthermore, the base metal industry was USD17.37 billion (13.72%). Next, the chemical and chemical products industry was recorded at USD12.65 billion (10%), the clothing industry was USD8.3 billion (6.56%), as well as the paper and paper products industry which deposited USD7.27 billion (5, 74%).




In encouraging economic growth and improving the performance of the manufacturing industry, the Ministry of Industry is carrying out various strategic steps in an effort to increase the value of exports from the manufacturing industry sector. Among them through increasing competitiveness and preparing superior products. Then, the use of free trade agreements (FTA) such as the acceleration of FTA negotiations, expansion into non-traditional markets, and the initiation of bilateral FTAs ​​according to industry needs.



"We also carry out international promotion programs through promotion and export assistance, increase producer capacity for exports, as well as link and match with global production networks. Furthermore, providing support facilities such as export financing facilitation, facilitation of unfair trading cases, and reduction of export barriers (NTMs), "said the Minister of Industry.



In addition, in April 2020 Indonesia will also become an official partner country at the Hannover Messe 2020 event in Germany. This opportunity is a good momentum to introduce the readiness of Indonesia's industry in the industrial era 4.0, promote investment cooperation and export in the industrial sector, as well as strengthen bilateral cooperation with Germany and with other countries oriented to technological innovation.



"Attending the event not only made Indonesia the first country in ASEAN to become an official partner country, but also supported national branding efforts on Indonesia's position as one of the new world economic powers and global manufacturing players," he said.










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