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Indonesia’s textile industry grows by 12.5% in Q1FY’22

Based on data from the Ministry of Industry (Kemenperin), Indonesia’s textile industry grew 12.5 per cent in the first quarter of 2022. This achievement is quite significant as in 2020 and 2021, the industry grew 13 per cent and 8 per cent respectively, says Dody Widodo, Secretary General,  Ministry of Industry. The textile industry is still making a big contribution to the Indonesian economy and can even be called the pillar of the Indonesian economy, he adds. The Indonesian textile industry is currently facing many challenges including growing competition from neighboring countries. Moreover, products from abroad have begun to flood the domestic market with lower prices.

Widodo therefore urges education and industry players to develop their facilities to answer these challenges. Elis Masitoh, Director, Textile, Leather and Footwear Industry, Ministry of Industry, adds the industry has boosted the gross domestic product (GDP) of Indonesia to 6.35 per cent. In nominal terms, the export value of the textile industry is equivalent to $13 billion with a total workforce of approximately 3.56 million people in all industries. Hopefully in 2030 the export value can increase to 20 billion US dollars and even $30 billion, says Elis.

In addition, the Ministry of Industry targets that there are 5 to 6 million workers that can be absorbed by the textile industry. However, it requires cooperation from policy makers from the community, educational institutions, to the research and development sector.

 

 
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