Growing Positive, TPT Exports Rise 2.71 Percent In First Half 2017

By : Hariyanto And Aldi Firhand. A | Tuesday, September 26 2017 - 22:12 IWST

Minister of Industry of Airlangga Hartarto during a working visit at PT Delami Garment Industries
Minister of Industry of Airlangga Hartarto during a working visit at PT Delami Garment Industries

INDUSTRY.co.id - Jakarta - The national textile and textile industry (TPT) continues to show positive performance in both domestic and export markets. In the first half of 2017, the growth rate of the export-oriented labor-intensive sector increased by 1.92% (YoY) compared to the same period in the previous year minus 0.13%.

"In addition, textile exports also rose 2.71% to become US $ 7.12 billion until July 2017," said Minister of Industry (Menperin) Airlangga Hartarto during a working visit at PT Delami Garment Industries, Bandung, West Java, Tuesday (26 / 9/2017).

The Ministry of Industry estimates that by the end of 2017, textile exports will reach US $ 12.09 billion and by 2019 it is targeted at US $ 15 billion.

"The increase in exports and the growing domestic market is marked by the increased utilization of production from the domestic industry," Airlangga said.

In addition, to improve competitiveness and productivity in this strategic sector, the government is working to facilitate logistical access and strengthen local branding.

"Currently, our textile industry is already integrated, 90 percent already produced domestically. Therefore, the increase of added value in Indonesia is also important to meet the domestic market, in addition to exports, "he said.

In an effort to protect the national brand, the Government of Indonesia took the World Intellectual Property Organizational (WIPO) Organization. In this case, the government will soon endorse Indonesia's participation in the Madrid Protocol, the protocol on the international intellectual property registration system.

Menperin also assess, TPT industry has great potential to grow and develop in the future. Therefore, based on the National Industrial Development Master Plan (RIPIN) in 2015-2035, this sector is prioritized in its development in order to be able to contribute significantly to the national economic growth.

Currently, the TPT industry operating in Indonesia has been integrated with the classification in three areas. First, the upstream sector is dominated to produce fiber products. Second, the intermediate sector, companies whose production processes include spinning, knitting, weaving, dyeing, printing and finishing. Third, the downstream sector in the form of garment factories and other textile products.

Based on data from the United Nations Industrial Development Organization (UNIDO), Indonesia is currently ranked ninth in the world for Manufacturing Value Added. This position is parallel to Brazil and the UK, even higher than Russia, Australia, and other ASEAN countries. Therefore, the Ministry of Industry continues to drive the industry downstream to increase the added value in the country.

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