China still dominated Indonesia`s textile imports, accounting for about 60 percent of total imports.
Jakarta (ANTARA News) - Indonesia`s textile and textile product imports are estimated to have dropped three percent during the first quarter of 2012 compared with the corresponding period from one year earlier, according to a textile businessman.

"It is expected that Indonesia`s textile and textile product imports in the first quarter of this year will drop by three percent," Chairman of the Indonesian Textile Businesses (API) Ade Sudrajat said here on Thursday.

He noted that China still dominated Indonesia`s textile imports, accounting for about 60 percent of total imports.

As a result of the ASEAN-China Free Trade Agreement (ACFTA), China`s textile products have flooded the Indonesian market.

"Indonesia faces difficulties in competing with China over textile products because China`s firms produce in large quantity," he noted.

Ade noted that Indonesia`s textile imports at the end of the year would jump by 53 percent in an effort to increase the competitive edge of the domestic textile industry.

"The country`s businessmen still face infrastructure problems. Infrastructure is important for the smooth operating of business," he said.

"Textile imports are expected to reach US$9.5 billion. This will reduce the competitiveness of textile industry at home," added Ade.

Further, Ade noted that businesses have asked the government to be committed to building infrastructure, such as toll roads, electric generating facilities and seaports.(*)

Editor: Heru Purwanto
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