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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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Corona Virus Can Boost Domestic Textile and Textile Product Industry Demand PDF Print E-mail
Written by Maizer   
Monday, 10 February 2020
The threat of spread corona virus still lurks the sustainability of business activities in several industries. Even so,  virus that resembles SARS seems to be able to present opportunities for domestic textile and textile product (TPT) players.

 

Secretary General of the Indonesian Filament Fiber and Yarn Association (APSyFI) Redma Gita Wirawasta said that stakeholders should utilize the momentum of the corona virus outbreak to boost the performance of the domestic TPT industry.

 

He does not deny that the corona virus that is endemic has the potential to disrupt flow of textile exports to China. In this case, the yarn produced in the country which has dominated textile exports to China has been hampered.

 

However, at the same time, corona virus that is endemic is also considered to have potential to suppress the importation of cheap fabrics from China which has so far suppressed performance of the national textile industry.

 

This in turn will hoist demand from textile product manufacturers in the downstream sector so that it will increase the absorption of products such as polyester filament, polyester fiber, nylon filament, and viscose fiber in the upstream sector.

 

In this case, Redma believes the production capacity of domestic textile producers is able to fill the niche left behind by imported fabric products from China.

 

"Actually we are able to substitute around 60%, but with this incident at least 30% we can substitute," Redma explained.

 

On the other hand, the corona virus outbreak also has the potential to hoist the demand for apparel products in the country.

 

Contacted separately, Corporate Communication of PT Sri Rejeki Isman Tbk (SRIL), Joy Citradewi said that some buyers of clothing products (buyers) from abroad began aggressively looking for alternative apparel suppliers following the outbreak of the corona virus.

 

This is done to anticipate the possibility of hampering the supply of apparel from existing supplier partners due to a disrupted raw material supply chain.

 

"They began to look for alternative factories that could produce, they worried that the case of corona in China would be prolonged," Joy Citradewi said.

 

Along with this, sales can be hoisted. Even so, the increase is not expected to be too significant given level of use of the company's production capacity that is nearing maximum. "The garment utilization has reached 98%," said Joy.

 

 
		
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