According to the Indonesian Textile Association (API), the performance of the textile and garment industry was poor in 2023, and the capacity utilization rate was just 50 percent in 2023.
“This is due to the multiple challenges faced by the industry, like demand slowdown in its key export markets and a surge in legal and illegal imports of textiles,” API Chairman Jemmy Kartiwa Sastraatmaja said.
According to the API Chairman, utilization rates fell from the upstream to downstream sectors of the textile and garment industry, resulting in thousands of job losses.
“Countries like China are trying to shed their excess textile stocks very aggressively in other countries,”
Sastraatmaja expects 2024 to be similar to the previous year and anticipates a recovery in 2025 onwards once the US Federal Reserve starts reducing interest rates in the second or third quarter of 2024.