Indonesian textile businesses are pessimistic about garment exports as well as domestic sales in 2018, despite an expected global economic recovery and local political events.
Overseas shipments of textiles and textile products, including garments, will stagnate this year, after climbing 5 percent year-on-year (yoy) to US$12.4 billion in 2017, according to a projection from the Indonesian Textile Association (API).
The business group attributes this to stiff competition, particularly from Vietnam, which is set to export to the European Union without paying any import duties under a free-trade agreement (FTA) between the two parties set to take effect soon. The 28-member bloc is Indonesia’s second-biggest export market.
“The EU still imposes an 11 percent duty on us, while Vietnam will get zero duty, so the competition is obviously very tight,” API chairman Ade...