In 2018, The Indonesian Government Restarted The Textile Equipment Pformation Plan.

World clothing shoes and hats news, the Indonesian government will restart textile equipment pformation plan or purchase with Chinese loans.

According to Indonesian media reported on January 10th, the Indonesian government's suspension of textile machinery and equipment has been suspended since 2015. With the increasingly fierce competition in the textile industry, the government is of the view that it is necessary to start the plan again.

Ahmad, director of the textile industry of Indonesia's Ministry of industry, said the government once again assessed that the upgrading of machinery and equipment in textile mills could produce significant effects on the development of the industry, especially in improving production efficiency.

Structural reforms need to be carried out, and the restructuring of the textile industry should continue.

Not long ago, the Ministry of industry sent representatives to China to discuss with the Chinese authorities about the renewal plan of the textile industry machinery.

According to the original plan, equipment pformation funds come from the national budget, and the government will also seek other sources of funds to reduce the financial burden, such as financial institutions such as China Development Bank and the Silk Road Fund established by the Chinese government.

The loan interest rate of the Chinese side is generally lower than that of the Indonesian commercial bank. However, if we want to obtain Chinese loans, the Chinese condition is to purchase equipment made in China.

Indonesia's Ministry of industry hopes to start at least several factories this year to implement the above plan, which is estimated to be about 400 billion shields. According to the plan, it will provide enterprises with 5% subsidies to purchase equipment, and each enterprise can get up to 5 billion shields.

Indonesian textile association said Indonesia's textile exports faced fierce competition in 2018.

According to Indonesian media reported on January 4th, A De, chairman of the Indonesian textile association, said that although the export of textiles in Indonesia increased by 5% to 12 billion 400 million US dollars in 2017, the export growth in 2018 will probably slow down, mainly due to fierce competition from Vietnam and other countries.

Clothing exports account for about 70% of Indonesia's textile exports, most of which are exported to the United States, followed by the European Union, Japan, South Korea and the Middle East.

As Vietnam and the European Union signed the FTA, its exports to the EU were zero tariff, while Indonesian goods required a 11% tariff, which greatly weakened competitiveness.

Indonesia is currently negotiating a comprehensive economic partnership agreement with the EU, which is expected to be signed in 2019 and implemented in 2021.

A De pointed out that in order to enhance competitiveness, Indonesia needs to further reduce production costs such as electricity, gas and labor, and improve production equipment. However, limited capital investment and shortage of skilled workers are the main constraints.

According to WTO, Global trade will grow by 2.1%-4% in 2018, higher than that of 1.8-3.6% in 2017.

According to official statistics, 1-10 months in 2017, Indonesia's clothing exports rebounded, but the demand for the US and EU markets stagnated.

According to statistics, Indonesia's textile and clothing exports increased by 15.1% over the same period in October, up by 18.3% and 3.8% respectively compared with August and September.

In 1-10 months, the total export volume of textiles and clothing in Indonesia increased by 5.5% compared with the same period last year, compared with 4.4% in the same period last year.

Indonesia's textile and clothing exports increased mainly due to the sharp rise in labor costs, resulting in a substantial rise in export unit prices.

It is understood that Indonesia's main export market for textiles and clothing is the United States, accounting for about 55% of Indonesia's textile and clothing exports.

In the three quarter, imports of textiles and clothing from Indonesia increased by 4.5% over the past year, and the total import volume remained stable.

At present, Indonesia's textile and apparel market share in the United States is gradually shrinking, the fourth largest supplier of textile and clothing imports to the United States, accounting for 5% of the total textile and clothing imports in the United States.

In the first quarter, Indonesia's textile and clothing exports to Australia increased by 12% over the same period last year, while Korea increased by 17.6% compared with the same period last year, and China's year-on-year growth of 20%. The focus of Indonesian garment exports gradually shifted to the Asian market.

Japan is the second largest export destination after the United States, accounting for about 10% of the total exports of Indonesian textiles and clothing, mainly due to the duty-free trade agreement between Indonesia and Japan. Indonesia is expected to conclude a duty-free trade agreement with Australia next year.

Indonesia's textile exports are expected to reach US $15 billion in 2019.

Indonesia officials revealed at the ITMF conference.

It is expected to reach US $15 billion in 2019, and the number of employees will reach 3 million 110 thousand, and the output of textiles will reach 1638 tons per year.

According to Indonesian officials, Indonesia's textile exports will increase by 11% annually. In 2017, it will contribute 12 billion 90 million dollars to the domestic economy and 13 billion 500 million US dollars in 2018.

By the end of 2017, the number of textile practitioners will reach 2 million 730 thousand, and it will increase to 2 million 950 thousand by 2018.

According to Indonesian media, Indonesian officials encouraged the industry to adopt digital technology, including 3D printing and automation, to make Indonesian textiles more competitive and efficient.

ITMF officials said that Indonesia's textile industry has the potential to accelerate growth in the future, and the investment environment is even better.

According to data from the United Nations Industrial Development Organization, Indonesia is currently the world's ninth largest exporter of high value added products, surpassing Russia, Australia and other ASEAN countries.

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