The Indonesian Textile Association (API) predicts that the growth rate of the textile and textile products (TPT) industry will slow down in the second quarter. This is because oil prices and the United States (US) dollar fluctuate. Secretary General of API Rizal Tanzil Rakhman estimates that the growth of the textile and textile products industry in the second quarter is lower than the realization in January - March of 14.2%. Even so, its growth is forecast to remain above 10%. However, the projection could change due to global economic sentiment. "We predict that it will still grow by a dozen percent," Rizal said, Wednesday (15/6).
“Hopefully there will be no fluctuations in the dollar and oil. We have to observe these two factors every day," he added.
Petroleum is one of the raw materials for making polyester. Polyester is a type of fiber that dominates domestic fiber consumption, which is 50%.
In the textile and textile products industry, fiber is the raw material for making yarn. In general, there are three types of fiber used by the national textile industry, namely polyester, cotton, and rayon.
In addition to oil, Rizal considered the new price of coal to be an important factor. According to him, fluctuations in coal will affect electricity tariffs.
Meanwhile, electricity is an important component in the cost structure of the textile industry and textile products.
Even so, Rizal is optimistic that the textile and textile product industry will grow 5% year on year (yoy) this year.
“We are still referring (to the 5% yoy target). Hopefully, factors such as coal, oil, the Covid-19 variant, the increase in PPKM, will no longer exist," said Rizal.
The Central Statistics Agency (BPS) noted that the national textile and apparel industry contracted 4.08% yoy last year. The decline is smaller than 2020's 8.8%.
The Ministry of Industry (Kemenperin) also recorded that the utilization of the textile industry was only 69.4% last year. While the clothing industry 74.4%.
Director of the Textile, Leather and Footwear Industry at the Ministry of Industry, Elis Masitoh, predicts that the textile industry will grow 2.31% and the clothing industry 5.84% this year. The apparel industry's peak growth was assessed to occur in the first quarter of 10.44%, while the textile industry in the third quarter was 5.88%.
The largest growth is projected to occur in the leather, leather goods and footwear industry, which is 6.38%. This projection is even bigger than the food industry growth of 5.74%.