Indonesia' s garment industry to grow 10.44% in H1 FY2022

Indonesia’s garment industry is likely to grow 10.44 per cent in the first half of the 2022, as the upcoming Ramadan festival will drive demand, estimates Elis Masitoh, Director- Textile, Leather and Footwear Industry, Ministry of Industry. Production volume of the apparel industry could grow 10.44 per cent on an annual basis in the first quarter of 2022. However, demand is likely to rebound to only 75 per cent of pre-COVID levels, adds Masitoh.

In Q2, FY2022, the volume of Indonesia’s garment industry production is likely to slow to 10.15 per cent on an annual basis, adds Masitoh. In Q4 FY2022, growth in the garment industry declined to 0.16 per cent. However, in 2022, Indonesia’s garment industry will grow 5.84 per cent on an annual basis. The textile industry or the garment raw material industry is projected to decline by 1.02 per cent in Q4 FY2022. The textile industry will start growing from July 2022 while the garment industry will have two surges of demand in 2023.

The realization of the textile industry production growth was in the red zone in the Q2 and Q3 of FY21, notes Redma Wirawasta, Secretary General, Indonesian Filament Yarn and Fiber Producers Association (APSyFI) However, the improvement in demand in the fourth quarter of 2021 will make textile production throughout 2021 better than the 2020 achievement.

Demand improvement witnessed in Q4 FY2021 will continue this year also, says Wirawasta. He expects demand to rise by 40 per cent under normal conditions. However, textile demand is expected rise by only 15 per cent in the first semester of 2022.