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Garment exports doing well despite
global crisis
Thanks to investment worth around Rp 4 trillion (US$363
million), garment-making businesses are expected to grow by
11.4% by year-end, and another 10% next year. Garments account
for 60% of Indonesia's textile and textile products (TTP).
Garment exports are projected to reach $6.4 billion this year,
from $5.82 billion in 2007, said Kurnia Saputra, a Board Member
of Garment Partnership Indonesia.
Growth in garments will be higher than the forecast 8%
increase in the total exports of TTPs, which will grow from
$10.3 billion in 2007 to an estimated $10.81 billion this year,
according to Redma Gita Wirawasta, Executive Director of
Indotextiles Research Center.
Although several textile companies have had to lay off
workers, garment makers have been doing well and have absorbed
another 50,000 workers this year, according to Redma Gita
Wirawasta, Executive Director of Indotextiles Research Center.
There are already more than 1 million workers in the garment
industry.
Major destinations of garment exports are the United States,
contributing 26%, the European Union (12%), ASEAN (5%) and Japan
(3%). Indonesia's garments account for only 3% to 4% of the
world's total, said Kurnia, but we can strengthen our global
position as an important garment industry player by pushing for
greater compliance with global manufacturing practices.
Despite the current global crisis, the United States and
Europe would remain major destinations for Indonesian garment
exports, while countries in the Middle East and the former
Soviet Union would act as buffer markets.
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