High hopes for Indonesian textile sector

18/05/2009

Although Indonesian textile exports fell during the first quarter, the rate of decline has decelerated compared with previous quarters and some believe the worst may now be over for the industry. It is now hoped that the sector will grow 4.6% this year.

According to the country’s Textile Technology Institute, textile exports fell 3.5% during the first quarter compared with the same period in 2008. However, this is a marked improvement compared with the 19% decline from the third to the fourth quarter in 2008.

The textile sector has particularly suffered as a result of lower demand from the US. Despite this, domestic demand for textiles in the first quarter was up 25%.