Textile Sales Growth Set to Slow Amid Sluggishness in the West
ID/Damiana N. Simanjuntak
Growth in Indonesia’s textile industry is forecast to slow next year as demand eases in the United States and Europe.
The Indonesian Textile Association (API) forecasts growth this year to hit 10 percent. But next year the industry is targeting a far more modest increase of2 percent.
API chairman Ade Sudradjat Usman said over the weekend that the sales target for next year was $25.7 billion — $14.7 billion in export sales and $11 billion at home.
Last year’s sales hit $23 billion — $13 billion abroad and $10 billion at home — meaning the target of 10 percent growth would put this year’s sales at $25.3 billion.
Ade attributed the slower growth to sluggish economies in the United States and Europe.
He said Indonesian textile producers were rejuvenating their production equipment and some were buying new machines. Some foreign companies have also expressed interest in relocating their plants to Indonesia, he said.
Ade said that apparel for some world-class brands was manufactured in Bandung, including Hugo Boss, Giorgio Armani and Guess. The products were bound to foreign markets, though some were also sold in Indonesia. Tangerang in Banten, also in the western part of Java, is another hub for textile production.
Shares in Pan Brothers, a major Indonesian textile producer, rose 4.4 percent to Rp 475 on the Indonesia Stock Exchange on Monday.