Bharat Apparel - Apparel Portal

INDONESIA: Garment industry prospects are very bright

JAKARTA:  Garment exports are expected reach Rp 10.4 billion this year according to Benny Soetrisno, Chairman of the Indonesian Textile Association.

Last year the garment exports recorded Rp 9.6 billion.

As the country is getting continuous orders and the banks are also in a helping mood by extending credits to garment companies, the prospects of the garment industry are very bright, it is felt.

Banks now see big opportunities in the industry and recognize the industry`s contribution to the country`s income, Benny Soetrisno said.

Indonesia is only worried about China as Chinese garments are flooding domestic and foreign markets with a great speed.

The Indonesian garments were mainly shipped to the United States and Europe, he said.

Indonesia`s main competitors in the world garment trade now were China and India. Indonesia`s garment exports had indeed increased in value but the number of workers in this sector which numbered 120,000 some time ago had decreased by 11 percent. The manpower reduction was due to the fact that many companies installed new machines to increase their production.

According to Benny, the reduction in manpower was something logical within the context of the modernization efforts. 

"Therefore, the government must immediately help garment exporters and give them facilities when they export their products on time, and give them new credits so that they can increase their production," Mr. Benny said.

Citi Bank`s action in extending credit to PT Pancaprima Ekabrother would set a good example to domestic banks to immediately channel more credits to this sector. There is concern that companies have tended to seek credits at foreign banks rather than domestic banks.

Source: Agencies • News Courtesy: BharatTextile.com