The Free Trade Agreement (FTA) with China has increased Indonesia's exports of textile and textile products to that country by more than 30 percent last year securing Indonesia`s position as an exporter of the products to China, the Indonesian Textile Association (API) said.
API chairman Ade Sudrajat said on Sunday that textile exports to China increased by 70 percent, fibers 65 percent and yarn 65 percent in 2010. "Indonesia is a reliable source for China for basic materials of the textile industry," Sudrajat said.
According to Sudrajat, demand for textile and textile products in China, a country of 1.3 billion people, could not fully met domestically. The demand has been growing rapidly as per capita textile consumption in China has increased from 12 kg to 18 kg per capita each year.
Meanwhile, Trade Minister Mari Elka Pangestu said that exports of textile and textile products to China last year consisted of garments 60 pct, fiber yarn three pct.
In a discussion with the press in Bandung, Minister Pangestu said that the competitiveness of China's textile industry had weakened due the rising manpower cost. In addition, trade tension with the United States and the European Union also had affected China's textile competitiveness.
On the other hand, in the last three years Indonesia had achieved its textile industry development target. "However, Indonesia still needs to improve quality and promotion," she said.
Indonesia has set the target for the exports of textile and textile products to China at 15 billion US dollars, compared to last year's years 11.2 billion US dollars.
However, by Indonesia has anticipated a decline in its exports of textile and textile products to China this year due to the rising prices of the basic materials, including cotton which had increased by 150 percent on the world markets.
The international price of cotton in 2010 stood at 1.5 US dollars and now has increased to 4.2 US dollars per kilogram. (ANTARA)
source:CTEI
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