Indonesian Textile Industry Competition with Vietnam & China
The growth of the textile industry and textile products (TPT) Indonesia is still slowing. This year, it is estimated to grow only about 2 percent compared to last year, with a value of 6.2 billion US dollars. Chairman of the Indonesian Textile Association (API) Ade Sudrajat said, still slowed growth, the Indonesian textile because industry even compete with products from other countries, particularly China and Vietnam.
“To scramble the domestic market, we compete with China product. While in the export market, we compete with Vietnam,” he said.
For the domestic market, Chinese textile products currently control about 6 percent of the market.
As for the export market, if Indonesia does not have a free trade agreement (FTA), then the benefit still other countries, such as Vietnam and Myanmar are included Less Development Country (LDC) so Generalized System of Preference (GSP) is great.
“Moreover, electricity tariffs in Vietnam 6 cents / kwh, but in Indonesia 11 cents / kwh,” said Ade.