Indonesia's textile industry is expected to increase the capacity utilisation next year from this year's 85 per cent, the textile association (API) told Asia Pulse.

API chairman Benny Sutrisno said the prediction was based on the export market's growing demand for textiles and garments combined with a recovery on the domestic market.

Sutrisno said that the capacity utilisation of the country's textile industry had dropped to 78.38 per cent in 1997 as a result of financial crisis in the latter half of that year causing a big slump on the domestic market.

In 1998, many producers succeeded in changing their orientation to export market resulting in an increase in capacity utilisation to 81.6 per cent.

"Last year, textile and garment makers could operate at 84.4 per cent of their installed capacity exceeding the previous record of 84.19 per cent in 1994," Sutrisno said.