The latest management briefing from www.just-style.com has questioned the ability of Indonesia to meet Assosiasi Pertekstilan Indonesia's ambitious targets given the textile and garment industry's somewhat uncertain future.
BROMSGROVE, UK (PRWeb) March 12, 2007 -- The latest management briefing from www.just-style.com has questioned the ability of Indonesia to meet Assosiasi Pertekstilan Indonesia's (API's) ambitious targets given the textile and garment industry's somewhat uncertain future.
According to API, if exports are to reach US$14bn in three years time, more than US$5bn will need to be invested. This will help pay for 2.4 million spindles, 64,000 shuttle-looms, 17,000 knitting machines and 180,000 sewing machines. Almost half a million new jobs will need to be created in the process.
Modernisation and greater productivity essential
All of this has to take place at a time when short term prospects for the smaller manufacturers look grim. The much needed modernisation of the supply chain will also need to completed before EU and US quotas imposed on China expire.
Indonesia cannot compete with China on price and low productivity remains a huge challenge. Whilst the technical skills of Indonesian operators are not in question, their output is only half that of their Chinese counterparts. Middle management also appears to lack merchandising and marketing expertise and a number of other core skills.
Fighting back
There are though reasons to remain optimistic. Indonesia's share of global textiles and garments has grown. Exports rose by an extremely healthy 12.5% in 2005 and should accelerate further for 2006 fuelled by the unexpected rise in sales to the EU.
Meanwhile, foreign investment has increased significantly with the figure for the first ten months of last year more than five times that for the whole of 2005. Furthermore, the Indonesian Ministry of Industry has reportedly allocated an additional US$500m for modernisation. Combined with the investment into CAD/CAM capabilities and the 'Indonesian Design Power' initiative, belief in the industry's future certainly seems to be strong. However, it remains to be seen whether the improvements in production technology and people skills will be a case of too little, too late.
The briefing is one of over 50 available free to just-style members. Monthly briefings published in the last year have reviewed the prospects for 2007, the key issues of 2006, RFID, the seven mega-trends, Lithuania, discount apparel retailing, sewn product technology, online apparel retailing, China, fashion purchasing trends, Brazil and Turkey. Members also benefit from having unrestricted access to as many as 20 stories, articles and features a day and can choose to receive personalised alerts and news feeds. Further details on the Indonesia briefing are available at www.just-style.com/briefings/ whilst details of just-style membership can be viewed at www.just-style.com/offer.aspx
Notes:
1. About the briefing
'Indonesia's textile and clothing industry' examines the country's background, man-made fibre sector, investment, employment and labour costs, companies, Government, imports and exports. A wealth of historical data is provided alongside a useful SWOT analysis of the industry, targets to 2010 and future prospects.
2. About just-style
Since 2001, www.just-style.com has provided daily news and analysis on the global apparel, textile and footwear industries. Today, just-style is the authoritative and timely source of business information and is the leading online resource.
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