2012 Indonesian Textile Industry is predicted to have Slow Growth

Indonesia's textile industry growth in 2012 is forecast to grow slowly or about 2 percent compared to last year, according to the Indonesian Textile Association (API).

Textile Industry

"We predict the growth of the world textile industry in general will decline next year, only Indonesia and ASEAN countries are able to have minor growth," said Chairman of the API, Ade Sudrajat in Jakarta, Friday (2 / 12).

He said, the decrease growth of the world textile industry, due to the debt crisis of the United States and Europe plus China's economic slowdown. The crisis, he said, causing the decrease in textile supply demand, so that the national production is likely to decrease, despite growing slowly.

"Previous year the growth could reach 20 percent, but next year we expect only 2 percent growth," he said. He also estimates the production cost of the national textile industry will rise next year, as various government policies will be set next year.

A number of policy that is perceived to be burdensome to the textile sector in Indonesia, including the plan of increasing Electricity Basic Tariff (TDL). He estimates the national textile production cost will rise above 10 percent next year compared to this year.