Indonesia' s textile industry to grow 3% this year: Indef

As per the Institute for Development of Economics and Finance (Indef), the Indonesian textile industry will grow only 3 per cent this year, much below the Ministry of Industry's target of 5%, says Ahmad Tauhid, Executive Director, Indef. Several factors will impact the industry' s growth in 2022, as per an Indo Textiles report. These include the uncertainty surrounding spread of Omicron variant whose impact can restrain demand in shopping and trade centers.

Secondly, the trend of imported textile products will affect domestic demand, adds Tauhid. The effectiveness of secure measure import duty introduced by the government in 2020 has proved ineffective. This has thrown many textile industries out of business, he adds. To boost growth in the textile industry, the government needs to improve economy significantly, Tauhid further adds. It also needs to handle the pandemic more effectively; especially with the emergence of a new variant of Omicron.