Industrial Trend Industri tekstile adalah industri yang mencakup beberapa aspek kegiatan industri, antara lain :

Fiber Making
In synthetics and artificial

Up-stream

Spinning

Weaving

Knitting

Middle-stream

Dyeing, Printing & Finishing

Clothing & Made-up Articles

Source: Assosiasi Pertextilan Indonesai

Down-stream

Indonesia has integrated structure of textile industry ranging from up-stream up to down stream except natural fiber production. Kata-katain..terus sebutkan deh posisi perusahaan yang kita analisa berada di posisi apa.

Performance of textile & clothing Indonesia. Description Number of Company (Unit) Capital Investment (Billion Rp) Man Power (people) Export (Million USD) Volume (000 Ton) Import (Million USD) Volume (000 ton) Net Export (Million USD) Volume(000 ton) 2004 2661 132362 1184079 7647 1626 1720 880 5929 764 2005 2656 132381 1176183 8603 1794 1606 851 6997 943 2006 2699 135677 1194326 9446 1880 1714 950 7732 930 2007 2704 137835 1200842 10044 1898 4312 1638 5692 260 2008 2754 141882 1252450 10399 1833 5241 1730 5157 103

Source: BPS, Ministry of Industry, BI, Data API Note: - data export/import 2007&2008 base on BI data, with the basic calculation of 2 digit SITC data (SITC 26+65+84), while Export/Import data 2003-2006 base on BPS data by HS. -data 2008 from Preliminary Figures.

Share of Textile & Clothing Industry to the GDP 2008 (in USD billion) Net-Export 5.16 Domestic Sales 5.44 Investment 0.37 Total 10.97 GDP 2008 407.38 Share of Textile & Clothing 2.7% Source: BI,Depperin RI Note: share 2008 lebih tinggi dibanding tahun sebelumnya (2007) sebesar 1.9%.

Indonesian TPT Export by Country/Region of Destination 2008 USA 37.4% EU 27 20% Middle East 7.8% Asean 6.8% Japan 5.4% Rest of the world (RoW)/others 21.1% Africa 1.6%

Indonesia was able to serve textile and clothing demand from more than 200 countries in 5 continents

Indonesia Balance of Trade on Textile & Clothing Textile & Clothing 2004 2005 2006 Export 7647 8603 9446 Import 1721 1606 1714 Balance 5927 6997 7732 Textile Export 3358 3703 3912 Import 1692 1552 1645 Balance 1665 2151 2267 Clothing Export 4290 4899 5534 Import 28 53 69 Balance 4261 4846 5465

2007 10004 4312 5692 4174 493 81 5830 219 5611

2008 10399 5214 5157 4131 4948 -817 6268 294 5974

Indonesian export was dominated by clothing product (60%). Imports were mostly for cotton fiber and auxiliaries. Production of textiles was to support production in clothing manufacturing.

Sales in Domestic Market (USD billion) Sales Value 2004 6.5 2005 3 2006 4.5 2007 2.7 2008 5.5

Composition of Domestic Demand 2008 Total Value 1.2 million ton Local Supply Import Unknown Import Percentage 64% 11% 25%

With more than 200 million population, Indonesia has very big domestic market size. Decreasing of domestic sales during 2005-2007 caused by illegal import. Government policy of garment importation was able to manage and compress the unknown product (showed by increasing of domestic sales in 2008) Indonesian export to ASEAN Countries was growing better. With its bulk population as more than 500 million people, ASEAN was very big potential market. ASEAN Free Trade Agreement was eliminating import duty among ASEAN Countries .increase probability to explore ASEAN market.

Middle east market was very big potential market to be explored. Economic growth in this region was quite un influenced by global recession. Africa Latin America was predicted will no much change even tend to get sluggishness. Textile Leading Exporters 2007 Exporters Value (USD Bill) EU (European Union) 80.62 China 55.97 Hong Kong 13.42 USA 12.39 South Korea 10.37 Taiwan 9.72 India 9.45 Turkey 8.73 Pakistan 7.37 Japan 7.11 UAE (United Arab Emirates) 4.02 Indonesia 3.83 . Clothing Leading Exporters 2007 Value (USD Billion) China 115.24 EU 103.37 Hong Kong 28.77 Turkey 14 Bangladesh 10.06 India 9.66 Vietnam 7.19 Indonesia 5.87 Share 33.9 23.5 5.6 5.2 4.4 4.1 4.1 3.7 3.1 3 1.7 1.6 Share 33.4 29.9 8.3 4.1 2.9 2.8 2.1 1.7

Compare to 2000, Indonesian share of textile was drop by 0.6% and clothing by 0.7%. Textile supplier countries were no change while there are 2 new-comer suppliers ener the top 10 in clothing.

Prospect in the future (stressed on Clothing Industry) SWOT Analysis Internal Factor Strength - Big production capacity - Less resources problem (has complete industry structure) - Well experienced in clothing industry - Good labor skill in competitive cost - Bulk size of local market Opportunity - growth of global trade 12% pa - growth of US import (as main market 8%) - Banning of Chinas products by most leading importers - World class buyer trust External Factor Weakness - Unavailability of Labor skill standard - Unavailability of technical standard - Lack of world class local brand - Mostly work in basic clothing/small production in high-fashion clothing. - Limitation in vertical integration Threat - Rising of news comer in clothing industry i.e. China, Vietnam and Bangladesh. - Local market distortion by illegal import and illegal trans shipment.

Prospect in the future

Projection up to 2014 (based on Roadmap of Textile Industry by MoI) 2008 Export Value (US$ Milyar) Labor Force (million) Domestic Share of Garment (%) World Share (%) Assumption: Annual export growth 8% Annual Labor absorption growth 3% 10.4 1.28 72% 1.76% TARGET 2009 2014 11 16.7 1.3 1.47 75% 80% 1.8% 2%