Indonesian textile and apparel exports are expected to remain stagnant this year. This has been predicted by the Indonesia Textile Association (API). Last year, the country noted a decline of 3.2 per cent to US $ 11.9 billion in its apparel exports.
Contradictory policies between central and local administrations, complicated tax procedures, inadequate infrastructure have emerged as major reasons to this situation. These factors lead to high logistics costs and electricity and gas prices that are higher than neighbouring countries.
“It’s good if it’s stagnant. Last year it declined because there are several problems that still persist in the country, though there have been some improvements in facilities from the government to boost the sector,” API Chairman Ade Sudrajat was quoted as saying by a leading daily in Indonesia.
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Ade has suggested some ways including lobby the United States to expand its GSP to increase reach of Indonesian products to US. The US is Indonesia’s biggest garment importer. He also called on the Government to expand trade agreements with big buyers.
