Fairer trade in the sector of textiles and textile products

tumblr_inline_mprvj8p6G31qz4rgpInterest rates, until June 2011 decreased, mainly for working capital and investment loans (source: Bank Indonesia). Working capital loans decreased 62 basis points and investment loans dropped 11 basis points, but consumer loans increased 84 basis points. The decline in interest rates also makes the difference between lending rates and deposit rates to decline by an aggregate 5.8 percent.

Textile exports in 2010 approximately 11 billion US dollars and the estimated volume in 2011, with a target at 15 billion U.S. dollars (as an illustration: in the first half of 2011, exports of textiles and apparel foreign exchange reached US$ 2.5 billion). Indonesia occupies the fourth position as a supplier of textile and clothing the world with the United States as its main market. With the composition of Indonesia’s textile exports are dominated by the garment around 60 percent and the remaining yarn and fabric.

Industrial sector of textiles and textile products “TTP”, a determinant of the sector in several Asian countries such as the Country: Pakistan, Vietnam, Thailand, Sri Lanka, and Indonesia. In 2010, TTP export growth of Vietnam, reaching U.S. $ 11.2 billion. In Indonesia, the performance of TTP is also contributing to economic growth in Indonesia. TTP industry contributed 2.18 percent of GDP and 8.01 percent of the processing industry in 2010. Even the non-oil export commodity that contributes the largest for more than 20 years is TTP.

In 2009, TTP industry accounting for 12.72 per cent in foreign exchange earnings of the industrial exports excluding oil and gas and for 9.58 percent of total non-oil exports, while 85 percent of the raw materials are imported cotton. Besides having a huge contribution in GDP and foreign exchange, the industry is also absorbed many workers, whether working directly or indirectly.

Since the lifting of the quota system and must follow the adjustments to the provisions of the General Agreement on Tariffs and Trade, until the 2009 general textile industry and textile products as follows:

  • Performance tends to decrease, seen from the decline in sales of fiber, especially in the domestic market sales of synthetic fibers and cotton. Production “rayon fibers” and “apparel” sector, with export orientation, tend to increase.
  • “Spinning” and “Weaving” Sector, experience greater pressure as a result of the downward trend in exports and a declining domestic market demand.
  • Poor performance of textile industry, due to low competitiveness of this industry. This was as a result of the burden of energy costs, labor, and transportation rates high enough and not competing with other producer countries.

Indonesia has the potential and opportunities are good enough to change the quota system include:

  1. Industrial production increased TTP Indonesia may boost employment. Therefore necessary economic incentives, including through lower interest rates for investment banks.
  2. Indonesian textile exports increased to boost foreign exchange income. Increased exports of TTP can be driven through the adjustment of the rupiah Rp. 8500/US$.
  3. The exchange rate of Rp./US$ of relative stability will help the textile and garment manufacturers in calculating the cost of raw materials and profits.
  4. Ensuring safe or secure raw materials, such as the development of cotton “The volume of imports of cotton each year ranges can reach 750000 tons”, or synthetic fiber manufacturing technology in the country.

This is consumption kjpp Pangaloan only

Speak Your Mind

*