The Indonesian Filament Fiber and Yarn Association (APSyFI) estimates that there will be a significant overflow of orders for garment products from Vietnam, which is currently under lockdown.
However, this condition is also not free from challenges. The reason is, in addition to the lockdown in Vietnam causing the closure of factories, China, which supplies Indonesian textile raw materials and textile production (TPT), is currently cutting production.
Secretary General of APSyFI Redma Gita Wirawasta said imports of raw materials from China reached 40 percent, so that the production cuts in the country would have an impact on Indonesia's exports. Meanwhile, China's production cut policy is related to energy control towards the zero emission target.
"There will be limphanan [orders], but on the other hand, we will be a bit difficult because the raw materials are from China," said Redma.
Redma explained, apart from Indonesia, the overflow of orders from Vietnam will likely be received by countries with a strong raw material base such as India, Bangladesh, or Turkey for the European market.
However, Indonesia is likely to receive an abundance of orders from the United States market which was previously filled by Vietnam. The reason is that the requirements for raw material products for the US market are not as stringent as in Europe.
"If it goes directly to America, the spillage will go directly to Indonesia. You can use local raw materials even though [supply from] China is reduced," he said.
Another opportunity, if orders for the European market are abundant to India or Turkey, Indonesia may be able to supply the raw materials. "We can supply raw materials, such as rayon, India is still lacking," he said.
Redma estimates the impact of this overflow order will last until the end of the year, although it also depends on restrictions in Vietnam and energy policies in China.