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The turn of the year has not provided bright prospects for the textile industry. Industry players assess that in 2023, the industry's performance has the potential to be darker. This is because there is the impact of high inflation that has smothered export destination markets such as America and Europe. In addition, global supply chains are still disrupted due to the war between Russia and Ukraine. “The 2023 performance is overshadowed by inflation in Europe and the United States, which is still high and also high interest rates. The focus of the Textile and Textile Product Industry or TPT in 2023 is the domestic market," said General Chair of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmadja on Monday (16/1/2023).

According to Jemmy, this condition has occurred since entering the fourth quarter of 2022. In fact, he explained, at the beginning of last year, TPT's performance was still growing according to estimates. He estimates that the performance realization in the fourth quarter of 2022 will not be saved. "[Even though] Q 1 and 2 in 2022 are still very good," added Jemmy.

In line with Jemmy, API Secretary General Rizal Rahman also expressed the same thing. According to him, the growth of the textile industry in 2023 is not expected to be high. "In my opinion, 2023 will not be easy, growth may not be too good," said Rizal on Thursday (19/1/2023).

Rizal said that the fragile export market cannot be quickly replaced with domestic demand. "The export market is down, the domestic market is not controlled," he added. In fact, according to him, if it can be mastered, the domestic market can be a promising market for domestic products.

"The domestic market is very promising if it can be protected from imported goods and filled with domestic products," he said. Although, domestic has not been able to cover the percentage of the export market in this industry, at least it can become a buffer stock for the resilience of the national economy in 2023.

"The fundamentals of the domestic industry are stronger if the domestic market is controlled," he concluded.

The crisis in the textile industry was practically felt by industry players in the third quarter of 2022. This was marked by mass layoffs (PHK). From a statistical standpoint, up to the third quarter of 2022, the textile industry is still reflecting export activity.

Data from the Central Statistics Agency (BPS) show that the value of Indonesian textile exports in January-September 2022 was US$10.23 billion in January-September 2022. This figure is still 17.48 percent higher than in the 2021 period which was still haunted by the Covid-19 pandemic. 19.

Meanwhile, the Central Statistics Agency (BPS) also noted that the gross domestic product (GDP) based on cash prices (ADHK) for the TPT industry was IDR 34.51 trillion in the first quarter of 2022, an increase of 12.45 percent yoy. Then, in the second quarter of 2022, the industry's ADHK GDP was reported to have skyrocketed again to IDR 35.17 trillion, an increase of 13.74 percent yoy. Until the third quarter of 2022, it grew positively by 8.09 percent (year on year/yoy) in the third quarter of 2022 and touched the figure of IDR 34.85 trillion.