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    The Market Slowdown In Europe And The United States &Nbsp; Indonesia'S Textile Exports Showed A Downward Trend.

    2011/11/28 11:20:00 19

    Indonesia Danamon

    Bank

    Economists say Indonesia's export oriented industries will suffer from a slowdown in the global economy, leading to sluggish demand. Commodities that are mainly exported to overseas markets will face a downward trend in prices.


    Industries that rely on imported raw materials are likely to be affected by US dollar liquidity and trade finance. The higher the degree of dependence on imported raw materials, the more vulnerable industries will be affected, such as pharmaceuticals, textiles, garments, electronics, shoemaking and paper products.


    Industries that use local raw materials or sell to local markets, such as cement, cooking oil and sugar, are less susceptible.


    Economic analysts also pointed out that reliance on imported raw materials and intermediate products

    industry

    Will be subject to exchange rate

    wave

    On the contrary, the use of local materials or domestic demand industries is less likely to be affected by exchange rate fluctuations.


    Indonesia Textile Association (API) said that because of the slowdown in European and American markets, orders for goods from Europe and the United States began to show signs of decline in September this year, and may gradually decrease in the coming months. The association will reduce its original export growth target from 24% to 20% this year, and set an export growth target of 5% in the next year, which is lower than the previous annual growth target of 20%.


    The Indonesia Electronics Industry Association (GABEL) said that the global economic uncertainty has gradually affected consumption intention, and global demand is likely to decrease in the coming year, especially in the US and Europe.

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