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
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.