A number of export-oriented industries increased production capacity, in line with increasing demand in destination countries. However, export volume has not matched the level before the Covid-19 pandemic. "We have started to increase production, but to match the level before the pandemic, we estimate it will be next year," said Deputy Chair of the Indonesian Textile Association (API) Anne Patricia Sutanto, Thursday (28/10/2021). Anne said the average utilization of the export-oriented textile industry reached 100 percent. A number of business actors have even added capacity.
He also ensured that Indonesia's garment exports did not experience price adjustments as a result of unresolved global logistics problems. Some exporters, he said, made deliveries using a freight on board (FOB) scheme, aka container fees paid by the buyer.
"So, for example, there is a price adjustment due to logistics, that is the decision of buyers to their respective markets," he added.
Data from the Central Statistics Agency (BPS) shows that the export volume of textile products with HS code 61 during January to August 2021 reached 160,854 tons, much higher than in the same period in 2019 and 2020 which were 152,474 tons and 147,982 tons, respectively.
Meanwhile, for HS code 62, which is clothing or non-knitted clothing accessories, the export volume during January to August 2021 is 105,993 tons. This volume is lower than the achievement in the same period in 2019 and 2020 which were 126,598 tons and 111,163 tons, respectively.
Separately, Chairman of the Association of Indonesian Vegetable Oil Industries (GIMNI) Bernard Riedo ensured that exports of CPO derivative products were carried out while still taking into account domestic needs.
Meanwhile, in terms of adjusting production capacity to offset rising demand, he said business players will continue to consider the condition of raw material supply.
“So far, there are no production constraints [of derivative products]. However, capacity is certainly in line with the supply of raw materials," he said.
Data from industry players compiled by the Indonesian Palm Oil Association (Gapki) shows that CPO production in August 2021 was 4.21 million tons, up from July 2021 production which amounted to 4.05 million tons. In total, production from January to August 2021 reached 33.57 million tons, an increase compared to last year's 32.53 million tons in the same period.
In terms of exports, the accumulated volume of processed CPO products sent abroad during January to August 2021 is 16.99 million tons. This volume is much higher than the export of processed CPO in the same period last year which was 12.89 million tons.