Industry players believe that demand for textiles and textile products (TPT) will continue to grow, despite the risk of price increases at the consumer level as a result of high global logistics costs. Deputy Chairperson of the Indonesian Textile Association (API) Anne Patricia Sutanto said global logistics conditions did not affect Indonesia's competitiveness compared to other producers. Indonesia's commitment to equalize production in the midst of a pandemic and logistical problems that occur makes textile products less likely to be disrupted.
"This logistical problem is not only felt by Indonesia, but also in exports from other producing countries. So in terms of competitiveness, it remains the same," said Anne, Tuesday (11/23/2021).
He also said geopolitics made buyers make Indonesia their main product supplier. According to him, Indonesia's position which is not inclined to a certain economic or political bloc places Indonesia's trade in a relatively safe situation.
"The trend in demand will continue to rise until 2022. This year it may grow in single digits, but next year we expect it to be in double digits," he said.
Anne who is also the Vice Chief Executive Officer of PT Pan Brothers Tbk. (PBRX) explained that the contribution of medical contributions in Indonesia's textile exports will begin to decline in 2021 compared to 2020. This is a signal that demand outside of medical equipment is starting to increase.
Citing data from the Ministry of Trade, exports of knitted goods in HS code 61 increased 24.92 percent in the period January to September 2021, from US$2.47 billion to US$3.04 billion. Meanwhile, exports of non-knitted garments under HS code 62 rose 3.36 percent from US$2.84 billion to US$2.93 billion.
Separately, Chairman of the Presidium of the Indonesian Furniture and Handicraft Industry Association (HIMKI) Abdul Sobur actually stated about the risk of falling demand due to high logistics costs.
At the same time, exporters are actually enjoying the opportunity to open up the United States market, along with access to Chinese products, which are still facing problems in Uncle Sam's country.
“In export destination markets, prices can rise by 10 to 15 percent because buyers pay for logistics. This has started to have an effect in the future, if the logistics cannot be followed by them, they can be stopped," he said.
Abdul Sobur believes that this problem can only be solved if Indonesia has its own shipping line. Over the years, transcontinental shipping management companies originating from abroad. Abdul Sobur suspected that there was a deliberate practice in setting shipping costs.
“I suspect there is some kind of cartel. So far, what has been shown is only from producing countries, not developed countries that are export destinations, even though the ones who are disadvantaged by this logistical condition are the buyers," he said.
Exports of wood and goods from wood recorded an increase of 22.36 percent from US$2.77 billion to US$3.39 in the period January to September 2021. The export value grew fantastically, despite the simulation of UNCTAD calculations which stated that furniture products were one of the most expensive products in the world. most affected by rising global logistics costs.
According to the UNCTAD simulation, five product groups that experienced a significant increase include computers, electronics, and optical products (11.4 percent); furniture (10.2 percent); textiles and textile products (10.1 percent); rubber and plastic products (9.4 percent); and pharmaceutical products and electrical equipment (7.5 percent).