ID :
14964
Tue, 08/05/2008 - 18:05
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http://m.oananews.org//node/14964
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RI'S TEXTILE EXPORTS EXPECTED TO STAGNATE
Jakarta, Aug 5 (ANTARA) - Indonesia's textile and textile product (TPT) export growth this year is expected to stagnate as a result of the financial crisis in the United States which has been the goods' main destination, a textile businessman said.
"Indonesia's TPT export performance is unlikely to change much because of stagnant market conditions as a result of the financial crisis in the United States," deputy chairman of the Indonesian Textile Producers Association (API), Ade Sudrajat, said on the sidelines of an exhibition here on Tuesday.
Sudradjat said TPT exports dropped in the first semester of this year though not so significantly. The year-on-year export figure in the January-May period dropped by about 8 percent.
In 2007, the value of Indonesia's TPT exports reached 9.8 billion dollars or an increase of only 3.8 percent compared with the figure in 2006.
The drop in Indonesia's TPT exports in the first five months of 2008 was something predicted before.
"Almost all countries which export TPT to the United States experienced the same fate. Due to the stagnant market, China even raised its incentives for TPT exports to 11 percent which had previously been scaled down to 7 percent," he said.
Sudradjat said Indonesia's TPT exports would not drop sharply, however, as there would be an increase in Japanese demand for the commodity in connection with the Indonesia-Japan economic partnership agreement.
"Exports in the first semester could still reach five billion dollars. We predict that there will be an increase by 10 percent in the Japanese market. We hope our exports will increase at least to the tune of last year's performance," he added.
In the meantime, the domestic market shares which happened to increase early this year had to face the adverse effects of the government's decision to raise fuel oil prices.
" In 2007, the domestic market share was recorded at 22 percent. This year it is likely to undergo a significant change, the more so because Chinese goods will flow into Indonesia as a result of China's policy to raise its incentives on TPT exports," he said.
"Indonesia's TPT export performance is unlikely to change much because of stagnant market conditions as a result of the financial crisis in the United States," deputy chairman of the Indonesian Textile Producers Association (API), Ade Sudrajat, said on the sidelines of an exhibition here on Tuesday.
Sudradjat said TPT exports dropped in the first semester of this year though not so significantly. The year-on-year export figure in the January-May period dropped by about 8 percent.
In 2007, the value of Indonesia's TPT exports reached 9.8 billion dollars or an increase of only 3.8 percent compared with the figure in 2006.
The drop in Indonesia's TPT exports in the first five months of 2008 was something predicted before.
"Almost all countries which export TPT to the United States experienced the same fate. Due to the stagnant market, China even raised its incentives for TPT exports to 11 percent which had previously been scaled down to 7 percent," he said.
Sudradjat said Indonesia's TPT exports would not drop sharply, however, as there would be an increase in Japanese demand for the commodity in connection with the Indonesia-Japan economic partnership agreement.
"Exports in the first semester could still reach five billion dollars. We predict that there will be an increase by 10 percent in the Japanese market. We hope our exports will increase at least to the tune of last year's performance," he added.
In the meantime, the domestic market shares which happened to increase early this year had to face the adverse effects of the government's decision to raise fuel oil prices.
" In 2007, the domestic market share was recorded at 22 percent. This year it is likely to undergo a significant change, the more so because Chinese goods will flow into Indonesia as a result of China's policy to raise its incentives on TPT exports," he said.
