Indonesia's population of about 220 million, the development of textiles, clothing to meet the needs of the people, the government has always attached great importance to Indonesia's problems, the first development of textile industry in Indonesia. From the late 1960s, Indonesia's political stability, focus on economic development, began opening up, develop export-oriented economy, and achieved annual GDP growth rate of 7% increase as labor-intensive textile industry has grown and gradually became system. Since Indonesia has many cheap labor, many famous international clothing brands have set up plants in Indonesia, to carry out processing trade, and promote the development
custom keychains wholesale of textile and garment industry in Indonesia, making oil and natural gas outside of the largest export product.
First, the general situation of the textile industry in Indonesia Indonesia's National Bureau of Statistics, Indonesia's National existing spindles 8 million, all kinds of medium and large enterprises around 4,000 textile and garment, the number of employees reached 180 million people and indirect employment population of 500 million years value of about 120 trillion rupiah (about 100 billion yuan), to create industrial added value was 40 trillion rupiah. In 2006 all kinds of textile and garment product exports 94.6 billion in 2007 to $ 10.6 billion, an increase of 12%, of which clothing accounted for nearly half of total exports to the original fiber, cotton cloth, silk, textile-based materials; imports of about $ 2 billion. Indonesia is expected to textile and garment exports in 2010 will exceed $ 14 billion. Indonesia's textile industry concentrated in West Java and Central Java and Jakarta, around 88% of its high-end yarn and woven garments in the international market have a competitive edge. Indonesia does not produce cotton, mainly from Australia, U.S. imports of cotton, but the oil-rich natural gas, chemical fiber production is relatively developed.
Currently, Indonesia's textile products exported to USA, EU and Japan. According to Indonesian Textile Association statistics, in 2007 Indonesia's textile exports to the United States totaled $ 4.32 billion, up 10%; exports to the EU total amount of $ 1.65 billion, down 12%; textile exports to Japan total amount of $ 504 million, an increase of 2.1%.
Second, the difficulties facing the textile industry in Indonesia and the government response to the 1997 Asian financial crisis, Indonesia has been badly hit, into the multiple political, economic and social crisis, the economy for three consecutive years of negative growth, the textile industry has also suffered heavy losses, are still facing difficulties :
(A) the equipment is now old, behind Indonesia's textile machinery and equipment, aging serious machine 20 years old accounted for 20%, machine age 10 years 60%, inefficient, uncompetitive.
(B) bank financing has been difficult although Bank Indonesia cut interest rates sharply (from 12.75% to 8%), but the banks do not want to lower lending rates to industry, resulting in the textile industry hard to compete with foreign manufacturers. Indonesia's textile export credit interest rate of about 18%, 7% higher than Vietnam, Mexico, 8%, India 10.5%, Pakistan 11% and 12% of Bangladesh are high.
(C) production costs in October 2005, the Government of Indonesia 125% hike in fuel prices; Indonesia's state power company electricity per kilowatt-hour average of 8 cents, while Bangladesh only 3 cents, 7 cents in Vietnam, China 7.6 cents; According to Indonesia's Bureau of Labor Statistics, Indonesia's labor productivity in the world ranked 59, China ranked No. 31, 0.76 cents per hour wage workers in Indonesia, 0.55 cents higher than the Chinese workers, the Indonesian Textile Association urged the Government to amend the labor law in order to service outsourcing, layoffs and severance pay have a reasonable minimum wage provisions.
(D) textile smuggling problem is serious, frequent acts of illegal transshipment, disturb the normal market order.
In this regard, Indonesia's Ministry of Industry Director General in charge of the textile industry in Sha said that in view of the textile industry as an important foreign exchange
microfiber towels wholesale earning industries in Indonesia and can absorb a large workforce, the Department of response measures to be taken are as follows:
First, update machinery and equipment, Indonesia's Ministry of Finance in 2007 from the State budget allocated 255 billion rupiah (about $ 28 million), Indonesia's textile and clothing used to subsidize the purchase of equipment manufacturers need to pay interest on the loan. The subsidies in 2008 to 4,000 billion rupiah (about $ 44 million), indicating that Indonesia's textile industry updates Government attaches great importance to machinery and equipment;
Second, the banks to relax financing, risk-averse domestic banks in Indonesia, the central bank would prefer to invest in Indonesia (SBI) tickets, but also unwilling to lend to the business community. Indonesia Indonesia's government is actively encouraging commercial banks to increase lending to industry, while Indonesia Textile Association also requests the Government to restore special export credit measures to assist the special credit needs of the textile industry, this measure was introduced early 1990s, because of the time Several companies have been abused and abolished;
Third, reduce production costs, in addition to the Ministry of Industry has urged the banking and social security funds (Jamsostek) to provide loans to textile update their equipment, but also promote the use of coal and other alternative energy sources and reduce dependence on oil, reduce production costs.
Fourth, encourage investment, as the full export potential, the next three years, Indonesia's textile industry still need to invest in the $ 5.19 billion. Foreign investment in Indonesia's textile industry in 2004 in the amount of $ 165.5 million in 2006 has increased to 4.18 billion U.S. dollars, soared 252%, indicating good prospects for the textile industry in Indonesia. In early 2007 the Government of Indonesia announced two provisions provide incentives for production and removal of the primary products of textile import duties, is also currently actively exploring more supportive fiscal, monetary and labor Industrial policy to attract more foreign investment.
Third, the Indonesian textile enterprises to strengthen cooperation in the textile industry in Indonesia about its people's livelihood, social impact is large, Chinese companies and enterprises in the textile sector in Indonesia have complementary space, Chinese enterprises should pay attention to business and Indonesia's cooperation in textiles, explore effective means of cooperation.
(A) the establishment of textile industrial park now, the Government of Indonesia for the development of economy, reduce unemployment, now working to develop industry, particularly labor-intensive industries.
non woven bags wholesale Chinese companies set up plants in Indonesia, China to open up special industrial parks, the use of advanced technology Chinese enterprises, management experience and financial strength to enhance business cooperation with Indonesia, the product can be directly sold around the world.
(B) cooperation in the field of machinery and equipment updates textile enterprises in Indonesia in general is currently facing the problem of aging equipment, and the difficulties encountered in terms of capital, companies want to update existing outdated equipment, improve production efficiency. China's textile industry a complete range of advanced equipment and the low price and maintenance costs, easier for companies to accept Indonesia, China has the strength of the textile industry and commercial banks with a capital stake in Indonesia's textile industry, involved in equipment renovation, which will help the two sides complement each other and improve competitive advantage.
(C) make good use of Indonesia's annual "In recent years, this platform Textile Machinery Exhibition, held every year in Indonesia a major international textile machinery exhibition, the scale and influence growing, more and more countries involved China has the strength of the textile machinery and textile technology companies are also actively involved, its size and quality are a major highlight of the show, making more and more about Indonesia's textile technology and equipment in China and the establishment of mutual cooperation.