Indonesia'S Textile Industry Moved To ASEAN Market

Ade Sudrajat, director of the Textile Association of West Java province, told reporters on 2 February 2009 that the purchasing power of the traditional export markets such as the United States and the European Union continued to decline, forcing the Indonesian textile industry to shift the market target to the previously ignored ASEAN market. The ASEAN has a population of 600 million and has a geographical advantage. The annual export value of textiles in West Java reaches US $10 billion, of which the largest amount is US $3 billion 500 million, accounting for 35%. Exports to the EU countries are US $1 billion 900 million, accounting for 19%. In contrast, the ASEAN market with a population of 600 million has a market share of only 7%, which is too low and has huge room for development.

The financial tsunami that swept the world has brought the impact of Indonesia's textile exports. It is estimated that exports in 2009 will be reduced by at least 10%. Facing this market trend, the textile industry will have to develop new markets for the sake of survival. The ASEAN countries with large consumption will be regarded as the first choice for neighboring countries. In order to develop the ASEAN market, the Indonesian textile operators will strengthen cooperation with Vietnam and Burma in the same ASEAN production countries, integrate product quality and jointly develop the ASEAN market.

Compared to the weaker export market, Indonesia's textile industry's willingness to invest is still active. Iwa Karniwa, director of the West Java branch office of the Indonesian investment Coordination Committee, said that in 2008, the branch approved a total investment of US $32 million 454 thousand, of which 1 million 381 thousand and 800 US dollars invested in the textile industry.