Exports of clothing and textiles from the Southeast Asian nation of Indonesia are expected to decline during the first seven months of this year, mainly due to the continuing impact of the COVID-19 pandemic in the country as well as major regions of the world.

About 70 percent of textiles produced in Indonesia are exported to the United States, the European Union and the Middle East.

In 2019, Indonesia exported clothing and fabrics worth $ 9,172.36 million, with a monthly average of $ 764.36 million. Last year, the value of exports fell 15.94 percent year-on-year to $ 7,709.94 million due to the COVID-19 pandemic. Average monthly exports fell to $ 642.49 million in 2020. It is expected to fall further to the $ 599.30 million monthly average over the January-July 2021 period, down 6.72 percent, according to Market intelligence tools for Fibre2Fashion. TexPro.

Indonesian industry is one of the top 10 producers and exporters of clothing and textiles in the world. The industry employs about 600,000 workers. In recent years, around 20 percent of factories shifted production from West Java to Central Java due to lower labor costs. However, efficiency is much lower in Central Java compared to Jakarta and its surroundings in West Java.

The power of Indonesia has an average age of 28.6 years. This ensures an abundant skilled workforce as well as young consumers in the state.

Since January 1 this year, Indonesia has implemented the Omnibus Law which aims to create new jobs, increase investment, reduce taxes, simplify licensing procedures, and renew the ease of doing business for both domestic and foreign producers.

Recently, the Indonesian Trade Promotion Center (ITPC) together with the Indonesian Embassy in Mexico made efforts to increase exports of home decor items and textiles to Mexico. The collaboration covers the Balinese clothing and textile market, as well as Indonesian furniture in Mexico.