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Saturday, February 24, 2024

Weakening of the Indonesian currency impacts the textile & garments sector

The weakening of the Indonesian currency Rupiah against the US dollar has affected the textile and garments industry of Indonesia. The main impact has been felt by those companies who import raw materials by paying in US dollars but sell them in the domestic market.

The impact of the weakening Rupiah is being felt by the industry, especially by those who import raw materials but sell in the local market,” Chairman of the Association of Fiber and Filament Yarn Producers Redma Gita Wirawasta said.

“However, those who import raw materials but also export textile finished products and transact in US dollars are not affected by the weakening currency,” Wirawasta observed. The Chairman of the Indonesian Textiles Association (API) Jemmy Kartiwa said that the industry is feeling the impact of the weakening of local currency, but the impact is not so considerable.

Kartiwa added that 60 percent of the products produced by the industry have been affected by the phenomenon, but also stated that the main cause of the worsening situation is unchecked and illegal imports. “The other reason is a slowdown in exports of textiles and apparel due to the weakening of consumer sentiments in their main markets of the US and the EU,” the API chairman noted.

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