The price of ready-made clothes such as clothes, pants and underwear is threatened to skyrocket due to the increase in world prices of cotton and oil. Both commodities have experienced price increases due to Russia's war in Ukraine. The war in Eastern Europe will also have an impact on clothing prices in other countries, including Indonesia. General Chairperson of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI), Redma Gita Wirawasta revealed that the raw materials for PTA (purified terephthalic acid) and MEG (mono ethylene glycol) which are raw materials for fiber and filament yarn before becoming textile fabrics, are highly dependent on prices. world oil and gas.
"Because of the war, oil prices have increased, PTA-MEG has also increased. Gas has also increased because it is the main raw material for PTA and MEG. PTA is from oil, MEG is from gas, so there is an increase there. Because PTA goes up, "Polyester has increased, the polyester raw materials are PTA and MEG, so because the polyester raw material has increased, the price of polyester has increased," he said, Friday (4/3/22).
The same thing also happened in cotton, there is the potential to continue to experience price increases. Indonesia also imports cotton from Ukraine with a value of up to $6,720. Although not so big, but still will have an impact. Moreover, the increase in cotton prices has even occurred since the end of last year.
"Yesterday the price of cotton went up, now there is a possibility that it could go up again. So plus polyester goes up, cotton goes up, so all raw materials must go up. For example, chemical H2SO4 or sulfuric acid from petroleum also has the same derivative, it goes up too. So all textile raw materials go up. all cotton polyester rayon will definitely go up," said Redma.
The biggest impact on consumers is the increase in the price of finished products such as clothing to textiles. When gas and oil prices have almost doubled, it also affects raw materials and apparel prices.
"Effective but the increase is not like the increase in oil and gas prices, so if the normal oil price is US$60/barrel, now it's US$100/barrel, it has gone up a lot. There is a manufacturing cost factor, so it doesn't immediately increase by 30-40%. up 10-5%. MEG is like going up 3-5% so it's not too much. If you go to garments it will increase by 2-3%, so it's not too direct, but there will definitely be an increase, "said Redma.
