Indonesian Textile Industry: Declining Orders In European And American Markets

2011/12/3 11:49:00 18

Indonesian Textile Industry European And American Market Orders Decline

Indonesia Danamon Bank economist said that Indonesia's export oriented industries will be global.

Economics

The slowdown will result in a slump in demand, and commodities exported to overseas markets will face a downward trend in prices.

Industries that rely on imported raw materials may be subject to the liquidity of the US dollar and the issue of trade finance. The higher the degree of dependence on imported raw materials, the more vulnerable the industry will be, such as pharmaceuticals,

Spin

Garments, electronics, shoes and paper products.

The use of local raw materials or sales to local markets such as cement, cooking oil and sugar.

industry

Less susceptible.

Economic analysts also point out that industries that rely on imported raw materials and intermediate products will be affected by exchange rate fluctuations. Conversely, the use of local materials or domestic demand industries is less likely to be affected by exchange rate fluctuations.

Indonesia Textile Association (API) said that because of the slowdown in European and American markets, orders from Europe and the US began to decline in September this year, and may gradually decrease in the coming months.

At present, the association has lowered its original export growth target from 24% to 20% this year, and set the target for export growth in the coming year to 5%.

Indonesia Electronics Industry Association (GABEL) stakeholders said that the global economic uncertainty has gradually affected consumption intention, and global demand may decrease in the coming year, especially in the US and Europe.