Indonesia Garment Manufacturing Sector Has Good Development Prospects, States CRI in New Research Report Available at MarketPublishers.com29 Jul 2016 • by Natalie Aster
LONDON – The textile and garment industry has been one of the most important and developed industry sectors in Indonesia. The country’s large population generated a huge demand, which helped form a steady domestic market in the recent years.
At the same time, the sector has faced certain difficulties owing to inadequate external and internal environment as well as its decreasing competitiveness in the past couple of years, which was indicated by the declining total output value, restricted export, decreasing profitability, excessive stock and phase-out. Within this framework, the country’s textile and garment industry stimulated the government to sign the Trans Pacific Partnership (TPP) aimed at promoting the export and providing overall support.
The share of the total output value of the national textile and garment industry in GDP dropped to 1.21% in 2015. In terms of other indexes, those of the textile and garment industry are negative in Indonesia in 2015, which all witnessed a decline with the exception of the capital expenditure and a considerable deterioration as against 2014.
In 2015, the export value of textile and garment products declined in key markets of Europe and the USA. It is primarily due to the fact that Indonesia meets competition with counterpart products from Vietnam amid the declining competitiveness.
Nevertheless, the country’s comparison advantages will remain in the short run due to its lower labour cost than other garment manufacturing nations. The garment manufacturing industry is projected to have good prospects for further development in the upcoming years in Indonesia.
New in-demand research report “Garment Manufacturing Industry Overview in Indonesia, 2011-2020” created by China Research and Intelligence (CRI) offers a complete analysis of the national garment manufacturing industry performance. It covers key product definitions and classifications; presents an analysis on the domestic garment market; discusses the top enterprises in the garment industry; evaluates the degree of the competition in Indonesia’s garment industry; contains imports and exports of textile and garment in the country; identifies the development opportunities and drivers faced by Indonesia garment industry; assesses the risks and challenges in the industry development; as well as includes an extensive analysis of prices of raw materials and products.
More new studies by the publisher are available at CRI page.