The Indonesian Ministry of Industry recorded that the value of apparel exports reached US$700.7 million in May 2023, up 45.92% on a monthly basis compared to US$480.2 million in April 2023. "Meanwhile, the volume increased from 21.9 million tons in April 2023 to 32.5 million tons in May 2023," said Director of Industry, Textiles, Leather and Footwear of the Ministry of Trade Adie Rochmanto Pandiangan, as quoted, Wednesday (28/6/ 2023). The good performance of the textile industry, especially apparel, is supported by increasing domestic market demand in line with preparations for the new school year.
In addition, retailers are finishing up the remaining clothing stocks from the Eid Al-Fitr production at the end of April 2023.
"We also suspect that the government's P3DN (Increased Use of Domestic Products) policy to fulfill public school clothes and ASN clothes in the government is ongoing. To anticipate this supply, the next supply, manufacturers have started to increase production activities," he said.
However, Adie admitted that the textile industry was still experiencing contraction due to high imports which suppressed the absorption of sales of domestic products. Although it has increased from the previous month, the performance of the textile industry is still not at its peak.
He hopes that as the new school year enters, the performance of the textile industry will improve.
"Our textile imports have increased compared to April. It has increased quite a lot from 133 thousand tons in May from 106 thousand tons. This volume of textile imports has roughly caused textile stocks in the market to not be absorbed and will remain large until June 2023, causing textile sales from garment decreased," he explained.