Indonesia Garment Industry Is Highly Competitive
Indonesia
The clothing industry is considered to be the most readily available and capable of absorbing the main shift from China.
Order
Countries in China
Competitive power
Losses begin to move towards high-tech industries.
Anne Su dendo, vice president of Panshi brothers clothing company in Indonesia, said that among some of the world's garment producers, Indonesia is the most readily available country that can absorb orders pferred from China.
Anne said that in recent years, the rapid change of China's economy has encouraged changes in the industrial structure and made China's apparel production costs rise sharply.
China is an industrial pformation of high technology.
The wages of skilled labor in China's garment industry are relatively low.
These workers choose to work in electronic or similar factories.
Structure, in the labor-intensive industrial sectors, such as clothing, there is a shortage of labor.
Anne said that three years ago, the production cost of Chinese garment factories was lower than that of Indonesia.
But at present, the production cost of Indonesia's garment industry is reduced, which can match the productivity of China's garment industry.
Sutela Chet, President of the Indonesia Textile Association (API), said that at present, the minimum wage of Chinese workers is three times that of Indonesia workers.
The difference in wage level has a considerable impact on the cost structure of garment production, because wage costs account for 15% of total production costs.
In addition, China is facing loss of labor, which has reached 35% according to rumour, and even 50% after holidays.
It is very difficult for Chinese garment manufacturers to execute orders throughout the year because they are looking for new workers after each contract is terminated.
Sutela Chet said that China's clothing industry
efficiency
It still says two times that of Indonesia.
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