Tintex presents water saving initiative in Munich

Indonesia's textile businesses urge the central government to reach an agreement with the European Union (EU) for the establishment of the Indonesia-EU Comprehensive Economic Partnership Agreement (abbreviated: Indonesia-EU CEPA), a trade deal that is expected to improve the flow of goods between both regions as the deal involves the reduction of trade barriers and liberalization of government procurement.

The textile industry is one of the industries in Indonesia that is expected to benefit from this trade deal as there exists significant demand for textiles in the EU. Negotiations about the Indonesia-EU CEPA, which started in 2011, were suspended in 2014 amid Indonesia's legislative and presidential elections. However, the government seems committed to reach an agreement before 2018.

Another trade deal that would boost demand for Indonesian textile from the United States and Japan is the Trans-Pacific Partnership (TPP). The Indonesian government has expressed its intention to join this free trade deal. However, it can take years before Indonesia can become member of the Indonesia-EU CEPA and TPP as local regulations and standards need to be harmonized with international ones. If Indonesia will not become a member of such trade deals then the major markets can decide to import textile products from countries such as Vietnam (member of the TPP) as tariffs are lower. Indonesian textiles firms, on the other hand, will be liable to around 40% duties hence reducing Indonesia's competitiveness.

Indonesia is famous for its batik, particularly batik from the island of Java. Batik recognized as a World Cultural Heritage by the UNESCO in 2009 is traditional textile produced by using a technique of wax-resist dyeing applied to cloth.

The United Nations agency said technologies including 3D printing, wearable technology, nanotechnology and robotic automation could disrupt the sector.

The Indonesia Textile Association once released an estimate that Indonesia could boost its market share in the world’s textile market to 5% by 2030. Indonesia’s share is now estimated at around 1.8%. By that reckoning, textile exports from Indonesia would reach a value of around US$ 75 billion by 2030.


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