Saturday, 19 October 2019 | 22:16 WIB

Indonesia Textile Industry Targets Export Value of US$14 Billion in 2018

Indonesia Minister of Industry Airlangga Hartarto (kemenperin)

JAKARTA NNC - The Indonesian textile and textile products industry is believed to be able to contribute significantly to foreign exchange (forex) revenues from exports this year.

Throughout January-July 2018, the value of Indonesian textile products shipments has reached US$ 7.74 billion. The value is targeted to reach $14 billion by the end of this year.

"Exports in the textile industry can be increased again as the completion of the comprehensive economic cooperation agreement scheme between Indonesia and Australia (IA-CEPA)," said Minister of Industry Airlangga Hartarto when visiting UPT Tekstil in Majalaya Regency, Bandung, West Java, Tuesday (19/ 9/2018).

In the presence of 100 small and medium industries (IKM) in the textile sector from the Bandung area and its surrounding areas, the Minister of Industry explained that the import duty on Indonesian textile and clothing products to Australia would be abolished or to be zero percent. This bilateral policy will be signed later this year.

"Through the CEPA, all Indonesian products are exported to Australia, the import duty is zero percent, including textile products, which previously charged 10-20 percent. That is, this strategic partnership is for our opportunities to expand the export market, he explained.

The Indonesian government is also trying to finalize the free trade agreement (FTA) negotiations with the European Union and the United States.

"We continue to encourage exports for the three leading Indonesian manufacturing products, namely clothing, textiles and shoes," continued Airlangga.

Keeping optimistic, the national textile industry has global competitiveness. Because, this sector has been integrated from upstream to downstream and has good quality in the international market. In order to boost productivity and competitiveness, the Ministry of Industry also facilitates the rejuvenation of textile machinery and equipment.

In addition, in line with the development of the 4.0 industrial revolution, the Ministry of Industry spurred the national textile industry to apply modern technology to be more efficient and improve the competence of human resources (HR) as needed in the digital era.

At present, the manufacturing industry is preparing to face the 4.0 industrial revolution that integrates the online world with production lines, he explained. Characteristics of industrial technology 4.0 include automation, internet of things, machine-to-machine communication and human-to-machine, and artificial intelligence.

The development of the industrial revolution 4.0 technology is something that cannot be avoided, but it becomes a new opportunity, so that Indonesia needs to prepare itself with a road map Making Indonesia 4.0. Moreover, the TPT industry is one of the five sectors stipulated in the roadmap to be a pioneer to implement the 4.0 industrial revolution in Indonesia, he said.

The Minister of Industry asserted that the TPT industry is also one of the manufacturing groups categorized as an export-oriented labor-intensive sector. Therefore, in accordance with the National Industrial Development Master Plan (RIPIN), the TPT industry is included in the development priority.

The Ministry of Industry noted that the export value of the national textile industry reached USD 12.58 billion in 2017, up 6 percent over the previous year. By targeting the TPT industry export of $14 billion in 2018, it is projected to take in 2.95 million workers.

Increase productivity

On the same occasion, Minister Airlangga expressed his appreciation to the textile industry players in Majalaya who had formed the TPT community. This community is a place for IKM actors to jointly develop the textile industry and find solutions to the challenges that exist.

"We continue to encourage the growth of the textile industry in Majalaya. The industry potential possessed by Majalaya is very prospective, especially to support the needs of the domestic market," said Airlangga.

Various efforts have been carried out by the Ministry of Industry for the TPT Majalaya IKM, including facilitation of production machinery and equipment, improvement of UPT services, as well as technical guidance and product promotion.