Indonesian Textile Industry Turns To Local Market To Purchase Chemical Filament Yarn

It is reported that Indonesia textile industry has formally agreed to optimize the local procurement of sustainable production of rayon to promote the growth of the country's textile industry. The textile industry is the core pillar of Indonesia's economy.

Recently, representatives from the government of Indonesia, textile and fashion industries and trade associations signed a memorandum of understanding on artificial silk.

Achmad Sigit Dwiwahjono, head of the chemical, textile and miscellaneous industries in India's Ministry of industry, said the Indonesian government is committed to promoting local textiles and attracting investors to develop the textile industry.

The use of artificial silk made in Indonesia can play an important role in promoting textile exports and reducing the high dependence on imports, so that Indonesia can catch up with the fourth industrial revolution.

Achmad Sigit Dwiwahjono said: "we hope to promote the use of locally produced textiles, such as rayon and polyester fibers, to reduce our dependence on imported products."

Over the past 3 years, Indonesia's textile exports continued to grow, and its exports increased from US $11 billion 870 million in 2016 to US $12 billion 590 million in 2017, and increased to US $13 billion 270 million in 2018.

Achmad Sigit Dwiwahjono said: "most of the export products are garments, accounting for 63.1%. This year's exports are expected to reach US $15 billion. If we do not increase national production, this goal will be difficult to achieve.

The increased use of viscose rayon or rayon in the manufacturing industry is expected to increase the output of the textile industry because it can be used as a substitute for polyester and cotton. Local production of polyester and cotton still can not meet the needs of Indonesia's national textile and garment industry.

According to relevant personages, the production of India NSI polyester fiber is not yet well developed, and the imports of cotton fabrics are still close to 100%.

Substitute material

Indonesia's Ministry of industry is working with Indonesian banks to encourage banks to support local textile producers.

Indonesia's large domestic production of rayon is expected to help Indonesia's textile industry play a greater role in the global market.

Basrie Kamba, President of the Asia Pacific rayon Association, said: "rayon can be an alternative material. Rayon is a more competitive and widely usable environmental friendly fabric. "

Since its production in December last year, 120 thousand tons of rayon fibers have been produced. Nearly half of the products are sold to the local market, while the rest are sold to 14 countries, including Turkey, Pakistan, Bangladesh, Vietnam, Germany and Italy.

If local enterprises in Indonesia can effectively use domestic made rayon, this textile will become a symbol of the Indonesian garment industry and expand the global market share of Indonesia's textile industry. Ade Sudrajat, chairman of the Indonesian textile association (API), said that in order to achieve this goal, all participants from upstream to downstream should devote themselves to developing sustainable production of rayon.

Indonesia's textile industry is facing a huge trade deficit, exports 500 thousand tons of clothing, imports 900 thousand tons, so stakeholders are urging the Indonesian government to formulate policy strategies to protect the industry.

The solutions include increasing the use of local materials and reducing imports. Indonesia's textile industry went through its peak in 1980s, when it surpassed Vietnam and other neighboring countries with good performance and healthy growth.