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Indonesia’s export-oriented textile industry’s average utilization rate has surpassed 100%

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indonesia-textileDespite the fact that a number of export-oriented sectors in the nation have improved their production capacity, Anne Patricia Sutanto, Deputy Chairperson, Indonesian Textil e Association, believes that Indonesia’s export volume would only approach pre-COVID-19 levels by next year. The export-oriented textile industry’s average utilization rate has surpassed 100%, with a number of corporate operators even boosting capacity. Indonesia’s export volume of textile items with HS code 61 reached 160,854 tonne from January to August 2021, according to data from the Central Statistics Agency (BPS). Meanwhile, from January to August 2021, the export volume of textile items with HS code 62 reached 105,993 tons. This tonnage is lower than the 126,598 tonne and 111,163 tonne achieved in the same time in 2019 and 2020, respectively.

As a consequence of unresolved global logistical issues, Indonesia’s garment exports did not see price revisions. According to Sutanto, several exporters used a freight on board (FOB) plan, which entails the buyer paying the container expenses.