INDONESIA: Textile Exporters Face Huge Slump In Orders
Worried officials of the Indonesian Textile Association (API) say they expect the country's 2001 textile export to decline 25 per cent this year due to the economic slowdown in the main US market.
Indonesia's textile exports to the US topped $2.1 billion last year but that figure is expected to drop sharply in the next few months.
Several textile companies have already lost orders as a result of the US terrorist attacks last month, while others have been forced to slash their prices or risk losing the orders.
"The local textile industry is very sensitive to the slowdown in the US economy because about 26.3 per cent of its export goes to this country," API executive director Indra Ibrahim told The Jakarta Post.
However, he said that despite the declining export, textile companies would try to avoid laying off workers and instead pursue other cost-cutting measures such as reducing overtime work.
"They (textile companies) may decrease production first or reduce overtime work in order to survive the difficult time," he added.
To view related research reports, please follow the links below:-
Help test our new apparel sourcing tool.
- China leads US apparel sources with falling prices
- Hard hit Turkish industry is not knocked out
- Vietnam grows share of US apparel imports in 2016
- "Power of the many" drives change at Otto Group
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Kohl's, L Brands
- Bangladesh crackdown has cost garment sector $100m
- Adidas and Burberry recognised for sustainability
- Inditex and H&M boycott Dhaka Apparel Summit
- Macy's will "do the right thing", says Lundgren
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022