Indonesia is hoping for a series of trade agreements. Eight are in the process of negotiation, three are under revision and two are in the process of negotiation. One agreement is with Australia. Another is the Regional Comprehensive Economic Partnership, a proposed free trade agreement between Asean and China, India, Japan, South Korea, Australia and New Zealand. Yet another is the European Free Trade Association. Agreements with Mozambique, Tunisia and Morocco are expected to be completed this year.

For Indonesia, trade agreements with partner countries can increase the export value and increase market share. With such agreements in place Indonesia expects its exports of textile and textile products to increase three-fold. The cooperation agreement with Japan has helped increase Indonesia’s exports. Till now lack of market access has been a constraint for the textile industry. Meanwhile, textile products from neighboring countries, such as Vietnam, can enter with zero per cent import duty.

At present, the market share of new domestic textile products is around 1.8 per cent while in Indonesia the textile industry has been integrated from upstream to downstream so that the potential for development is still large. The industry in Indonesia wants downstream products to be protected from the onslaught of imports.