Indonesia's Imports of Chinese Textiles Sharply Increase Impact on Local Product Competitiveness

Since the implementation of the ASEAN-China Free Trade Agreement (ACFTA) in January 2010, Indonesia’s textile imports from China have risen sharply.

According to the Indonesian Textile Association (API). In 2010, China’s textiles and apparel accounted for about 40% of the Indonesian domestic market.

It is estimated that China’s current share has increased to about 60%, which is due to the implementation of the ASEAN-China free trade agreement, the Indonesian Textile Association said.

The Indonesian Textile Association stated that if Indonesia’s product competitiveness continues to decline, its import of Chinese products will increase in the local market. The decline in Indonesia’s product competitiveness is due to rising manufacturing and other costs.

The Indonesian Textile Association said that if the government does not take measures to support the country's textile and clothing sector, Indonesia's textile industry will really worry about this situation.

In relation to the machinery reorganization plan introduced by the government to improve the competitiveness of the Indonesian textile and clothing industry, the Indonesian Textile Association stated that the plan did not achieve the desired goal because only 10% of the nation’s existing 2,869 textile manufacturing units could Benefit from this program.

The Indonesian Textile Association asked the government to find ways to reduce the impact of fuel and electricity price increases so as not to affect people’s purchasing power.

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