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Indonesia: Bright prospects for apparel exports

After a weakening in the last 3 years, apparel export have started booming. The export will be a positive in the second quarter of this year, which can be seen from the projection of the Indonesian Textile Association which says Chairman of the Indonesian Textile Association (API) Ade Sudrajat said the relocation of factories to several regions in Central Java that encouraged the growth of new high-tech factories helped boost the productivity of apparel manufacturers. In addition, the competitiveness of apparel products was also boosted as many business people also employ trained workers.

Energy cost has been concern with the manufacturers in downstream industries, causing high operational costs due to the cost of electricity. Energy cost for textile industry is high at US $ 12 cents per kWh on an average. On the other hand Indonesia's main competitor in the textile sector set a much more competitive electricity tariff, like in Vietnam and Bangladesh to be charged only US $ 6-US $ 7 cents per kWh. One of the factors of stagnation of the textile industry in the country is due to the imbalance of energy costs, whereas India, China, Vietnam and Bangladesh are growing rapidly.

 
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