APSN Banner

Indonesia's batik exports decline by 8.39 percent

Source
Tempo - October 6, 2024

Han Revanda Putra, Jakarta – Indonesia's Ministry of Industry (Kemenperin) noted that batik exports in the second quarter of 2024 decreased by 8.39 percent on an annual basis (yoy).

The Director General of Small and Medium Industries and Various Industries (IKMA) at the Ministry of Industry, Reni Yanita, attributed the decline in Indonesia's original fabric exports to geopolitical influences.

"The decreased exports are suspected to be due to global or geopolitical influences, as batik is not only a fashion item but can also be applied as home decor," Reni said when contacted by Tempo, on Saturday, October 5, 2024.

The government had previously relaxed batik imports through Trade Minister Regulation (Permendag) Number 36 of 2023. Reni assessed that the export performance was not a result of this regulation, as it only regulated import activities.

Meanwhile, the Functional Expertise Industry Development Officer at the Directorate of Textile, Leather, and Footwear Industries at the Ministry of Industry, Agus Ginanjar, believes that the textile and textile product (TPT) industry generally still has great potential to further increase exports. One area that can be targeted, especially, is the European Union market.

"Especially with the imminent implementation of the IEU-CEPA (Indonesia-European Union Comprehensive Economic Partnership Agreement)," said Agus in Solo, Central Java, on Thursday, September 12, 2024.

This is further compounded by the economic conditions in Bangladesh, which are currently not favorable. According to him, Indonesia must seize the opportunity to increase exports to the European market, which has been the largest market for Bangladesh.

"While the Bangladeshi market predominantly caters to Europe. Actually, this is the time for our national TPT industry to be able to 'overtake in the curve'. We can further boost our exports, especially to that European market," said Agus.

According to Agus, this opportunity is also supported by Indonesia's potential with an integrated TPT industry from upstream to downstream. Starting from fibers, yarns, fabrics, and even finished garments. "In the world, only three countries have integrated TPT industries from upstream to downstream, namely Indonesia, China, and India."

Deputy Chairman of the Indonesian Textile Association (API) in Central Java, Liliek Setiawan, said the position of the textile and textile product industry in Indonesia is very crucial. By 2023, according to him, the TPT industry still remains the largest contributor to exports after the oil and gas sector. Even when Covid-19 hit, this industry still contributed around US$14.22 billion. "At that time, this sector became a social safety net as it was able to employ around 4.5 million workers," he said.

He hopes that by 2030, the TPT industry can achieve exports of up to US$48 billion with an increase in market share from 1.47 percent to 5 percent.

– Septia Ryanthie contributed to the writing of this article.

Source: https://en.tempo.co/read/1925052/indonesias-batik-exports-decline-by-8-39-percen

Country