Is Indonesia's Rising Cost Of Textiles In A Dilemma?

< p > > a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > industry is the earliest developed industry in Indonesia. Textile industry, as a labor-intensive industry, grows and grows with the support of the country, and gradually becomes a system. Because Indonesia has many cheap labor force, many international a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" famous 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. < /p >
< p > 2006, all kinds of textile > a href= "//www.sjfzxm.com/news/" > clothing products < /a > exports amounted to US $9 billion 460 million, and 2007 was US $10 billion 600 million, an increase of 12% over the same period last year, of which clothing accounted for nearly half of the total export volume, mainly made of raw fiber, cotton gauze, silk and textile accessories, with an import volume of about 2 billion US dollars. Indonesia's textile and clothing exports are expected to exceed US $14 billion in 2010. Indonesian textile enterprises are concentrated in West Java and central Java and around Jakarta, accounting for 88%, and their high-grade yarn and garments are competitive in the international market. < /p >
< p > but recently, Indonesia textile enterprises operators generally complained that they were forced to raise the price of their products by 10% because of the rising production costs. These production costs are what they must bear, including the rise in electricity and wages. The government raised the price of electricity by 15%. Sutela Chet, President of Indonesia Textile Association (API), pointed out that the rising cost of production has reduced the competitiveness of Indonesia textiles in the domestic and international markets. < /p >
< p > Sutela Chet said: "our < a href=" //www.sjfzxm.com/news/index_c.asp "> textile > /a > sales price has increased by 10%. He pointed out that Indonesian entrepreneurs seek to increase efficiency to reduce high production costs. However, it is impossible for entrepreneurs to take radical measures, such as reducing the number of workers. Sutela Chet said that entrepreneurs have taken other measures, such as re setting factories in other areas, and choosing factories in the first place are low wage areas. Factors such as electricity, water and communication costs are also being considered. < /p >
< p > according to the statistics of the Indonesian National Bureau of statistics, Indonesia has 8 million spindles, 4000 large and medium-sized textile and garment enterprises, 1 million 800 thousand employees, 5 million indirect employment, and an annual output value of about 120 trillion rupiah (about 100 billion yuan), with an annual industrial added value of 40 trillion rupiah. If Indonesia's textile prices increase, their competitiveness in the international market will be affected, or even affect the export earnings of textile exports. < /p >