After falling for two consecutive years, national textile and textile product exports grew in 2017, valued at $ 12.4 billion, up by 4.4 per cent from 2016 at $11.87 billion. The amount exceeded the target of the Indonesian Textile Association (API) of $11.87 billion. The increase was largely due to enhanced demand from Asean, Japan, China and the US as well as improved quality of national textile products.
Kemenperin data predicts textile exports will continue to increase until 2019 to $13.5 billion, then rise again to $15 billion a year later. Last year, the textile industry entered the top four major manufacturing sub-sectors. Out of the total 17 million workforce, the industry ranked third, below processed food and beverage industries of 3.3 million and automotive 3 million people. The fourth position is taken by the furniture industry 2.5 million people.
On the other hand, APIs are more conservative in setting export targets. This year, TPT exports are projected to be stagnant. However, exports may jump twice, if Indonesia establishes a FTA with the EU. Currently, national textile exports to the EU are subject to import tariffs (BM) of 11-17 per cent, while Indonesia, Vietnam, get 0 per cent tariffs starting this year, because they have FTAs with the EU. Every year, the average export of Vietnamese TPT goes beyond $20 billion. The government is speeding up FTA discussions with EU, post last year's successful FTA with Chile. The FTA discussion with Australia is also the focus of the government.
