Weak Exchange Rate Of Shield Currency Causes Indonesia'S Textile Industry Expansion Plan To Be Blocked

< p > Indonesia a href= "//www.sjfzxm.com/news/index_c.asp" > textile industry < /a > Association (API) predicts that as the shield currency weakens against the US dollar, the textile industry (TPT) will postpone its business plan this year, so this year, the investment value of the textile industry has declined or declined compared with last year.

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Less than p ago, A De Sudrajat, chairman of the Indonesian textile association, said in Jakarta that in recent weeks, the shield currency has exceeded 12 thousand shields against the US dollar, which has led to the expansion of the textile machinery purchase price, as most of the machines are imported by US dollars. "Ade"

"Most of the investment is allocated to buy new machines, and the current shield condition makes the industry postpone the purchase of the machine."

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< p > he did not want to elaborate on the downward trend of textile industry investment this year. Last year, about 140 textile enterprises were allocated assistance to the purchase of machinery through the Ministry of industry's machine renewal program. By last November, 145 textile enterprises, footwear industry and tanning industry had absorbed the restructuring funds of 110 billion 500 million shields.

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< p > the incentive is mainly to help domestic industry, because the aid can stimulate the industry to replace the old machine, so as to improve the efficiency of the factory, and also hope to increase the production capacity.

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< p > earlier, the < a href= "//www.sjfzxm.com/news/index_p.asp" > Indonesia < /a > textile association predicts that the textile products in the domestic market will reach 70 megabytes or stagnate last year. The sales volume will be reduced by 5% as the price trend is raised.

"At present, several kinds of a href=" //www.sjfzxm.com/news/index_c.asp "> textile raw materials < /a > still need to be imported. As a result, the weakness of the shield currency has pushed the production cost, and the industry is compelled to adjust the selling price, but the consumers may not be able to accept it.

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Except for P, the purchasing power of the people decreased. This can be seen from the slow economic situation of the whole country. Gross domestic product (PDB) increased by 5.6% in the third quarter of last year, which is lower than that in the second quarter. In this case, people prefer to buy daily necessities rather than buying textile products.

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(P) the government plans to raise the industrial electricity base price (TDL) and the pressure on the textile industry is greater. Therefore, the Indonesian textile association asks the government to postpone the plan.

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< p > A De admits that next year, the sales of T shirts of presidential candidates (capres) and party symbols will be improved, but it is not expected to compensate for the decline in sales of other textile products.

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< p > on the other hand, it is expected that the export of textile products will not increase this year. The Benny Soetrisno of the Indonesian textile industry association has set an index. This year, the national textile exports increased from US $12 billion 400 million to US $12 billion 500 million last year to 13 billion 600 million US dollars, and the textile industry has become one of the dominant export products of China's manufacturing industry. "Benny"

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< p > related links: < /p >

< p > Indonesia has a population of about 220 million, developing textile industry and meeting the needs of people to dress. It has always been a high priority for the Indonesian government. The textile industry has become the earliest industry in Indonesia.

Since the late 60s of last century, Indonesia's political situation has been stable, focusing on economic construction, opening up to the outside world, developing an export-oriented economy, and achieving an annual growth rate of 7% in GDP. As a labor-intensive textile industry, it has gradually grown and grown into a system.

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< p > because Indonesia has many cheap labor force, many famous international clothing brands have invested in Indonesia to set up factories, develop processing trade, and promote the development of Indonesia's textile and garment industry, making it the largest export product of oil and natural gas.

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