Rayon shortage is costing Indonesia

22/10/2010
The textile and apparel industry in Indonesia increased the value of its exports by 19.5% in the first half of this year, compared to the same period in 2009. Unlike in previous periods of growth, the biggest boost on this occasion has come from exports of fibres (up by 51.4% in their own right) rather than finished garments.

With high demand across the globe, textile industry figures in Indonesia have begun to worry about a shortage of rayon yarn and fabric in particular, which is leading to Indonesian firms losing out to rivals in other parts of Asia.

The executive director of Indotextiles, Redma Wirawasta Gita, has told local media that the export volume of Indonesian rayon yarn to the US increased by 41.6% in the first eight months of 2010 compared to the same period in 2009.

This figure seems good until you learn that the comparative growth figures for export volumes to the US from Pakistan, India and China were, respectively 309.2%, 213.1% and 126.4%.