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Indonesia’s textile industry expect recovery by 2022


Indonesia’s export volume is expected to approach pre-Covid levels only by next year. The export-oriented textile industry’s average utilization rate has surpassed 100 per cent, with a number of corporate operators even boosting capacity. As a consequence of unresolved global logistical issues, Indonesia’s garment exports did not see price revisions. Several exporters use a freight on board plan, which entails the buyer’s paying the container expenses.

For the third quarter Indonesia’s textile and apparel industry contracted 3.34 per cent. In the first quarter the textile and apparel industry contracted 13.28 per cent. In the second quarter there was a 4.54 per cent decline. As for last year, the textile industry contracted 8.88 per cent.

However, Indonesian Textile Association expects a turnaround by the end of year, driven by high demand and recovering market. Even if this does not happen, the industry hopes to reduce contraction rate compared to last year. Utilization began to improve in October 2021 and almost reached 80 per cent. The average utilization of the textile industry in September 2021 was at 72.31 per cent. In contrast, the apparel industry reached 84.83 per cent, and the leather, leather goods and footwear industry reached 80.18 per cent.