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Indonesian industry ministry helps textile and apparel industry rise from COVID-19 effects


The Indonesian Ministry of Industry continues to support Small and Medium Industry (IKM) players including the textile and apparel sector in order to be able to rise from the pressure of the COVID-19 pandemic.

As per Indo Textiles, the ministry has carried out various initiatives to increase production and sales through online marketing support. Supported by a workforce of 139 people and using 104 units of weaving machines, PT SantosaKurnia Jaya managed to market its products to the local market in the form of headscarves with the Rabbani, Elzata, and Nibras brands. As for exports, the textile SMEs supplied products to two Japanese manufacturers, namely Hattori Takeshi and Toyoshima.

The Minister of Industry said that exports of textiles and textile products needed to be re-optimized after being hit by the impact of the Covid-19 pandemic. This is in line with optimism from production growth and manufacturing demand which shows positive numbers.

The Ministry of Industry continues to actively support the recovery of the productivity of textile and apparel SMEs. It is currently drafting implementing regulations from Government Regulation Number 28 of 2021 regarding the central provider of raw materials and/or auxiliary materials for IKM. Especially for SMEs who cannot carry out their own imports, so that they can increase the productivity and competitiveness of SMEs.

Referring to data from the Central Statistics Agency (BPS), the contribution of the textile and apparel industry reached 6.11 percent of the total GDP of the non-oil and gas processing industry in the first quarter of 2021. Meanwhile, apparel exports from January to March 2021 reached 1.94 billion US dollars.

Exports were dominated by convection garments with a value of $1.64 billion The remainder is exports of knitted garments, textile apparel, knitted socks, and leather garments and accessories.

In the same period, textile industry exports were recorded at $1.06 billion. Exports were dominated by the spun yarn group with a value of $0.42 billion and was followed by exports of man-made staple fiber valued at $0.21 billion, and other textile goods at $0.14 billion, as well as several other commodity groups.