Textile Business Players Ask Europe and Turkey Market Opens

JAKARTA - Indonesian Textile Association asked the government to open up the Free Trade Agreement (FTA) with the European Union and Turkey. The two countries have a potential export market for textiles and textile products (TPT).

Chairman of the Indonesian Textile Association Ade Sudrajat said this during Indonesia actually did FTA with competitor countries such as China and Korea. According to him, in terms of infrastructure and human resources engine, the domestic textile industry is ready to perform an increase in exports. Provided, important export markets is easy to slip.

Pertumbuhan Tekstil dan Produk Tekstil: Karyawan merapikan kain lokal yang dijual di salah satu tokoh di Pasar Mayestik, Jakarta, Kamis (29/1).(Republika/ Yasin Habibi)

"We are ready to meet the government's target to increase exports of 300 percent, as long as the FTA with the EU and Turkey to be done," said Ade in Jakarta, Sunday (3/8/2015).

Ade said that, during these textile exports to Europe are still small, only about 3 billion dollars per year. This is due, Indonesia charge an import duty of 12 to 30 percent. In fact, Europe is a potential market for exports because it has a total population of around 260 million people with an average income of 40 thousand dollars. In addition, textile consumption is also large: 28 kilograms per capita.

"If we have an FTA with Europe, then we can increase export revenue to 12 billion US dollars," said Ade.

According to Ade, other countries such as Vietnam, Cambodia, and Bangladesh already has FTAs ​​with the European Union so that they are subject to a zero percent rate. Therefore, no wonder if the textile products from these countries are circulating in the EU.

Another potential market share for Indonesia is Turkey. According to Ade, Turkey is a gateway for entry into Eastern Europe.
"Eastern Europe can give a quick response and to get into Western Europe and America," said Ade.

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