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Indonesian upstream textile production down

Redma Gita, Secretary General of Indonesian Filament and Filament Yarn Producers Association (APsyFI) decided to reduce production volume in IdulFitri, causing production in the second quarter 2017 to decrease. Reduction in the amount of its production by reduced demand from the downstream textile industry.

APsyFI considers this demand by the downstream textile industry has already deposited its raw materials since the first quarter of 2017 for the future of IdulFitri. In addition, there is an indication of declining demand from the domestic market for garment products, causing apparel manufacturers to temporarily halt production and reduce demand for raw materials from upstream.

Meanwhile, raw materials needed by the upstream industry were affected by the government's policy of appealing to avoid being available at the time of going home and backlash.

Redma says that the appeal of raw materials for the upstream textile industry could not be transported. To do the production. The production volume association in the second quarter / 2017 decreased, for fiber from 150,000 tons in the same period last year to 120,000 tons. Production of filament fibers dropped from 135,000 tons in the same quarter last year now to 125,000 tons.

He says that in terms of declining production, utilities in the second quarter of 2017 are only 60 per cent to 65 per cent of the installed capacity, compared to last year's 70 per cent.

Redma explains APsyFI in 2016 that its association can produce fiber filaments and fiber each of 830,000 tons per year. The hope in 2017 did not happen significantly decreased compared to the amount of production last year.

He added interesting upstream textile industry is still about competitiveness with other countries. Competition is not the same as countries like India or Vietnam whose cost of production is cheaper with Indonesia.

 
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