Indonesia’s exports of textiles are projected to grow five to six per cent next year. The country is aggressively signing trade agreements such as the European Free Trade Association, India, Australia, Algeria, and Morocco. The aim is to increase exports to Australia, the EU, Chile, Mozambique, Tunisia, Morocco, and the Regional Comprehensive Economic Partnership. In the meantime efforts will be made to harmonize tariffs from upstream to downstream and have competitive energy prices.

Heavy import duties on purified therephtalic acid, which is a raw material for polyester and plastic, as well as on polyester mean that Indonesia’s products are less price competitive than other countries’ products. The country’s main destinations for its textile exports are Europe, the United States and Japan.

In the textile sector too there are investments, especially in the intermediate or midstream sectors. Currently, some Chinese investors are interested in investing in the country and building production facilities. The third largest textile company in China is currently finalizing plans to invest in the fabric and dyeing sector in Indonesia, which is weak and needs heavy investment. The company is a producer of high quality fabrics, especially for premium brand shirts, such as Hugo Boss.