Indonesia's textile industry benefits from the crisis in China's textile industry

Editor's note: The Indonesian textile industry benefited from the slowdown in growth in the Chinese textile industry. After the government cancelled the subsidies and incentives provided for the textile sector, the Chinese textile industry was surviving the crisis.

Indonesia's textile industry benefits from the crisis in China's textile industry Indonesia's textile industry benefited from the slowdown in growth in the Chinese textile industry. After the government cancelled subsidies and incentives for the textile sector, the Chinese textile industry was surviving the crisis.

According to the Indonesian Textile Association (API), the Chinese textile industry also finds it difficult to find skilled labor while labor costs continue to rise. This provides the Indonesian textile industry with good conditions for use and competition with Chinese textiles.

The Indonesian Textile Association (API) said that the decline in cotton prices from last year's historical high has also provided favorable conditions for the Indonesian textile industry.

The financial crisis in the EU and the United States last year did not have a major impact on the Indonesian textile industry because Indonesian textile industry found new markets in Asia. Last year, Indonesia's domestic market sales also increased.

However, the API stated that the interest rate on lending in the textile industry is high, and the country plans to start raising electricity tariffs in April this year, which also poses an obstacle to the growth of the textile industry.

The API stated that the government should find a solution to these two issues so that the Indonesian textile industry can continue to develop because the Indonesian textile industry employs 15% of the total national labor force.

The bank's interest rate for the textile industry is currently at double digits, while other countries are a single figure.

At the same time, Indonesia's Central Bank (BI) said that it will encourage commercial banks to expand their interest rates to the textile industry with competitive interest rates.