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Indonesia’s textile & apparel exports to decrease 5%


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Indonesian textile and apparel exports have been forecasted to decrease by 5 per cent, as compared with the estimated 2016 export value. Production costs in country’s RMG manufacturing units are also likely to increase in line with a new increase in minimum wages this year that would impact the exports value of Indonesia.

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According to The Indonesian Textile Association (API), the decrease in overseas demand caused by global economic downturn is unlikely to improve until 2018.

As a result, the country’s exports are likely to witness downfall even in 2016 as the year’s target for textile and apparel exports was initially set at US $ 12.7 billion (up 3 per cent over the year before), but because overseas demand had not grown as expected, last year’s exports are estimated to decreased by 5 per cent compared to 2015 exports, and continuing the downward trend, Indonesia will not see surge in its exports worldwide in 2017 too.

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