Indonesia: Transformation Of Textile Leather And Sports Shoes Needs To Be Faced.

< p > > a href= "http://sjfzxm.com/news/index_f.asp" > International < /a > the market has gradually recovered, but it has not yet benefited the Indonesian textile industry.

The United States is the largest export market for Indonesian textiles, and the US economy has gradually promoted the development of Indonesian textile and garment industry. However, the actual benefits of the industry are not obvious. The main reason is that the industry competition from Vietnam and Bangladesh is becoming increasingly fierce.

The analysis shows that every 1% increase in the US economic growth rate will increase the number of textile imports from Indonesia to 1.5% in the next 3 orders, while the increase in the European economic growth rate by 1% will increase the number of textile imports from Indonesia to 3% in the next 2 orders.

The recovery of European and American markets should be conducive to the export of related textile products in Indonesia. However, due to the increasingly fierce international competition, Indonesia's textiles can get more favorable conditions in the recovery of the European and American markets, and the focus is still on the competitiveness of products.

In 2009 and 2013, the market share of Indonesian textiles in the United States was 4.9% and 3.7% respectively, while the European market was 1% and 0.8% respectively, indicating that Indonesia's textile market share was very limited in Europe and America, and showed a decreasing trend.

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< p > the increase in production costs has made Indonesia's textile industry worse.

In recent years, the increase of electricity price, the increase of minimum wage and the depreciation of exchange rate have resulted in an increase in the cost of textile production in Indonesia. As the labor cost accounts for 6% and 27% of the production cost of the spinning and weaving industry and the downstream garment industry upstream of the textile industry, the increase in the minimum wage has a more significant impact on the labor intensive clothing industry.

The electricity cost accounts for 25% and 1% of the upstream and downstream costs of the textile industry, respectively.

Since April 2014, the Indonesian government has again increased the price of industrial users in Zhongda (middle and large stores) since April 2014. According to the information from the Indonesian textile association (API), a total of 48 textile enterprises were directly affected by the increase in electricity prices. They had to reduce the number of employed labor force, reduce the production capacity by about 20%, and lead to an increase of the price of the finished apparel products by more than $5 million.

In addition, the depreciation of the rupiah also pushed up the cost of textile production.

Indonesian textile cotton imports accounted for 99.5% of the proportion, textile dyeing chemicals and auxiliaries, even if the use of domestic goods also traded in US dollars.

Analysis shows that every 1% depreciation of the rupiah will lead to an increase of about 6.91% in the next quarter's textile production costs.

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< p > API estimated that Indonesia's textile exports amounted to 12 billion 900 million US dollars this year, of which 60.9% of garments (such as shirts, T-shirts and skirts) accounted for about 60.9%, and fabrics and yarns accounted for 39.1%. In order to maintain the export scale of Indonesian textiles, the Bank of Indonesia suggested that Indonesia should focus on products with competitive advantages produced by market characteristics.

Based on the relevant economic models, Mandiri bank calculates and recommends that Indonesia should launch its main products in various international markets.

In the US market, yarn, women's wear, children's wear, men's clothing, cotton and other fiber sewing thread are preferred; in Europe, yarn, sewing thread, men's coat and gloves are the main products; yarn and sewing thread products have the most advantage in Japanese market.

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In the conclusion of the report, the P Mandiri bank suggested that the Indonesian textile industry should be more concerned about how to choose textiles with high quality and competitive advantages so as to have the opportunity to compete with other textile exporters so as to enhance the international market share and the overall textile value of Indonesia.

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