Indonesia’s exports of textile products have fallen by 30 percent. The threat of a global recession that is said to occur in 2023 is now being felt for Indonesian textile businesses. On the other hand the weakening of purchasing power in Europe and the United States has triggered an increase in imports of textile products to Indonesia from these countries.
So on the one hand export demand has declined but on the other the domestic market has been flooded with imported products. The disturbance has caused the textile industry's utilization to decline sharply. As a result, there has been a reduction in employee working hours and termination of employment or layoffs.
Indonesian exporters still rely on western countries or traditional markets. But gradually they are targeting countries in Africa, Eastern Europe, Central Asia, and South Asia.Export opportunities to a number of these countries are very bright because they are considered strong against the threat of a 2023 recession. Among these are Egypt, Nigeria, Morocco, also Asia, including India.
Indonesia has entered into a trade agreement with the United Arab Emirates so that the export tax for Indonesia would be zero. In this way, exporters in the Indonesian clothing, footwear, food and agricultural products sectors can export to Africa and the Middle East more easily and cheaply.












