Prospects for the textile and clothing industry in Indonesia, 2016

June 2016 | 50 pages | ID: P71369D6FBEEN
Textiles Intelligence Ltd

Abstracts

The textile and clothing industry in Indonesia fulfils a vital role in the country's economy. It is the largest source of manufacturing employment and in 2015 it was the second largest source of exports. The industry is involved in almost every sector of the textile supply chain  including yarn production, weaving, knitting, dyeing, printing and finishing and clothing manufacture  and there is a large man-made fibre industry. Indonesia has a very large population. This constitutes a huge and growing domestic market for the textile and clothing industry worldwide, and provides a firm foundation for the industry in Indonesia. Furthermore, the domestic market has been expanding significantly in recent years as prosperity has risen and wealth has spread, and it seems set for further growth. However, these developments have made the domestic market an attractive target for foreign suppliers. Imports are rising strongly and the domestic market has been well supplied by cheap imports from China. Also, illegal imports appear to be a significant and growing problem. Looking ahead there are ambitious plans for further expansion of the textile and clothing industry in Indonesia. The government is encouraging foreign investment, and has set targets to increase the industry's share of global textile and clothing trade markedly by 2020. This report looks at the development of the textile and clothing industry in Indonesia, its size and structure, textile and clothing production, and production technology and machinery. The report also features: a geographical, political and economic profile; detailed analysis of the country's imports and exports; a review of government policies, investment incentives and foreign investments; an analysis of the industry's strengths, weaknesses, opportunities and threats (SWOT); and insight into Indonesia's infrastructure and human resources and how these affect the textile and clothing industry.

Contents

SUMMARY
IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO
THE ECONOMY OF INDONESIA
DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN
INDONESIA
INDONESIA: GEOGRAPHICAL, POLITICAL AND ECONOMIC
PROFILE
Geographical profile
Political profile
Economic profile
INDONESIA: INFRASTRUCTURE
Road transport
Railways
Airports
Seaports
Telecommunications
INDONESIA: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING
INDUSTRY IN INDONESIA
INDONESIA: TEXTILE AND CLOTHING PRODUCTION
Textile and clothing production
INDONESIA: TEXTILE MANUFACTURING COSTS
Yarns
Woven fabrics
Knitted fabrics
INDONESIA: TEXTILE AND CLOTHING EXPORTS
INDONESIA: TEXTILE AND CLOTHING IMPORTS
INDONESIA: TEXTILE AND CLOTHING DOMESTIC MARKET
INDONESIA: FOREIGN DIRECT INVESTMENT (FDI) IN THE
TEXTILE AND CLOTHING INDUSTRY
Foreign investment
TEXTILES AND CLOTHING IN INDONESIA: GOVERNMENT
POLICIES AND INVESTMENT INCENTIVES
Government policies
National investment law
Freedom to invest
Company formation
Taxes and duties
Availability of foreign exchange
Access to local funding
Labour practices
General infrastructure
Availability of land
Encouragement for small and medium-scale enterprises
Investment promotion
Investment protection
Double taxation relief
Arbitration
Investment incentives
Import duties
Tax allowances
Export manufacturing
Bonded zones
Investment guarantees and dispute settlement bodies
Investment Guarantee and Protection Agreement
Multilateral Investment Guarantee Agency (MIGA)
International Centre for Settlement of Investment Disputes (ICSID)
Intellectual property protection
TEXTILES AND CLOTHING IN INDONESIA: STRENGTHS,
WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats

List Of Tables

LIST OF TABLES

Table 1: Indonesia: political and economic profile, 2015
Table 2: Indonesia: economic indicators, 2012-15
Table 3: Indonesia: number of employees in textile and clothing factories by sector, 2009-13
Table 4: Indonesia: number of textile and clothing companies in operation, 2009-14
Table 5: Indonesia: number of textile and clothing factories by sector, 2010-13
Table 6: Indonesia: textile and clothing production by sector, 2010-13
Table 7: Indonesia: textile and clothing exports by type, 2009-15
Table 8: Indonesia: textile and clothing exports by destination, 2013-15
Table 9: Indonesia: clothing exports by country of destination, 2009-15
Table 10: Indonesia: textile and clothing imports by type, 2009-15
Table 11: Indonesia: textile and clothing imports by supplying country and region, 2013 and 2014
Table 12: Indonesia: retail sales of textiles and clothing, 2009-14
Table 13: Indonesia: foreign direct investment (FDI), 2010-15