Big Indonesian firms enter specialty textile market

October 12, 2017 - Indonesia

Indonesia’s dependence on imports for specialty textiles for special purposes has led several big domestic firms to either start or boost production of such materials, according to the Indonesian Association of Synthetic Fiber Producers (APSyFI), which feels the government should lower gas prices and other costs as such textiles need higher investment.

PT Asia Pacific Fibers is one company that has entered this market, according to a report in a top Indonesian daily.

To keep the investment going and be able to fulfill national demand, the government must lower gas prices, electricity tariffs and labour costs that remain higher than rivals China and India, the newspaper quoted APSyFI executive member Prama Yudha Amdan as saying.

APSyFI has urged the government to lower the gas price from $9 per million British thermal units (mmbtu), among the highest in the world, to $6 per mmbtu as energy contributed to 25 to 30 percent of production cost structure in upstream textile industries.

Shoes and furniture makers earlier complained that volume and variety of local specialty textiles were limited. According to the Indonesian Society of Interior Designers, about 60 per cent of furniture materials, including textiles, are still imported. (DS)