Ditjen PEN/MJL/38/VI/2016 June INDONESIA Export News What's Inside The Indonesian government has set texle and texle products as one of the Top 10 export commodies to be exported to the internaonal market. One of the products is woven fabric which has long history in Indonesia. There are various tradional woven fabrics from plenty of regions in the country with their own disncve designs. With industrializaon era, more and more woven fabrics are produced in modern mills using the latest technology. Woven Fabric
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1Export News June 2016
Ditjen PEN/MJL/38/VI/2016 June
I N D O N E S I AExportNews
What's InsideThe Indonesian government has set textile and textile products as one of the Top 10 export commodities to be exported to the international market. One of the products is woven fabric which has long history in
Indonesia. There are various traditional woven fabrics from plenty of regions in the country with their own distinctive designs. With industrialization era, more and more woven fabrics are produced in modern mills
using the latest technology.
Woven Fabric
EDITOR’SDESK
Dear awesome readers,
Clothing is one of basic necessities for humans. Textile and textile products are keep evolving in accordance with the advancement and progression in mankind. The Indonesian Ministry of Trade has set textile and textile products as one of Indonesia’s Top 10 export commodities.
The habits of modern society are always reflected in its lifestyle, economy, social and culture aspects. This can be seen in the shifting trend of textile and textile product markets. The June edition of Export News is bringing you woven textile products from Indonesia.
There are numerous types of traditional woven fabrics in various regions, thanks to Indonesia’s rich natural resources and artisans and craftsmen who have high level of creativity while at the same time preserving the traditional values. There are also plenty of examples of modern woven fabric employing the latest technology. While traditional woven fabric uses natural raw materials, modern woven fabric also uses synthetic materials which promises uniform quality in all production batches.
In this June edition of Export News, which is published monthly by the Directorate General of National Export Development (DGNED) at the Indonesian Ministry of Trade, we are highlighting the export performance of Indonesian woven fabric products which enjoyed a positive trend of 92.46% in the period of 2011-2015.
As usual, we also include a list of producers and exporters of Indonesian textile producers allowing foreign buyers to establish a direct communication. We are keen to get more international buyers who are interested in building trade relationships with local exporters and manufacturers as well as investing in Indonesia.
Thank you.
Advisor : Nus Nuzulia Ishak
Editor in Chief : Tuti Prahastuti
Managing Editor : RA. Marlena
Editor : Sugiarti
Writer : Widy Haryono
Design : Dewi
Editorial Addresses :DIRECTORATE GENERAL OF NATIONAL EXPORT DEVELOPMENTMinistry of Trade of The Republic of IndonesiaJl. MI. Ridwan Rais No. 5Jakarta 10110 – IndonesiaPhone : +62 21 3858171Fax : +62 21 23528652Email : [email protected] : http://djpen.kemendag.go.id
Published by :DIRECTORATE GENERAL OFNATIONAL EXPORT DEVELOPMENTMinistry of Trade of The Republic of Indonesia
Ditjen PEN/MJL/XXVI/06/2016
Export News June 20162
Table of Contents
Editor’s DeskTable of Contents
0203
04
06
10
11
12
Hot IssueCarrying traditional legacy to modern efficiency
Woven Fabric
Market Review
List of Exporters
Commercial Attaches
Indonesian Trade Promotion Center (ITPC)
3Export News June 2016
1Export News June 2016
Ditjen PEN/MJL/38/VI/2016 June
I N D O N E S I AExportNews
What's InsideThe Indonesian government has set textile and textile products as one of the Top 10 export commodities to be exported to the international market. One of the products is woven fabric which has long history in
Indonesia. There are various traditional woven fabrics from plenty of regions in the country with their own distinctive designs. With industrialization era, more and more woven fabrics are produced in modern mills
using the latest technology.
Woven Fabric
Almost all regions in Indonesia have their own types of traditional woven cloth or fabric. The art of weaving is related to the society’s knowledge, cultural, belief, and social organization systems as well as natural environment. Therefore, each region will have its own distinct woven fabric. The quality of a woven fabric can be seen from the quality of its materials, colors, motifs and decorations.
As the sector is being more and more industrialized, Indonesia also produces woven fabric in industrial mills. The production of woven fabric is supported by processing and printing machines which
Hot Issue
are competitive to produce high-quality textile products with stringent quality control over the fabric to ensure the products meet international standards.
Indonesia is a world’s leading textile producer including woven textile products. Indonesian textile manufacturers can churn out woven textile products with high quality by following trend and application of the world’s fashion industry. With such capability, Indonesian woven textile products are well accepted in the international market to fulfill the needs of world-class branded garment.
Export News June 20164
Kain tenun, or woven fabric, is a piece of cloth mode by weaving two different sets of yarns or threads, the vertical thread is called warp and the horizontal is weft. Woven fabric can be made using threads from wooden or plant fibers, cotton, silks and other materials.
Carrying traditional legacy
to modern efficiency
Hot Issue
5Export News June 2016
Market ReviewMarket Review
Indonesian woven fabric products include those grouped in Harmonized System (HS) 500720 which includes Woven Fabrics Containing 85% Or More By Weight of Silk or Silk Waste Other Than Noil Silk; HS 500790 which includes Woven Fabrics of Silk or Silk Waste, Nesoi; and HS 500710 which includes Woven Fabrics of Noil Silk. Major export destinations for Indonesian woven fabrics were Thailand, United States, Singapore, Hong Kong, South Afrika, China, India, the Netherlands, Malaysia and Cambodia. Export to Thailand recorded the highest trend in the 2011-2015 period of 1,146.17%.
The export value was US$138,000 in 2013 which almost doubled to US$226,000 and yet another two-
fold increase to US$420,000 in 2015.
Other countries are also exporting their own woven fabric products. The export value reached
US$56.46 million with the Top 10 exporters were China, Germany, the
United States, Turkey, Belgium, India, the Netherlands, Taiwan, Italy and South Korea. In 2015,
China export value was US$15.40 million, an increase of 4.43% from
the previous year’s export of 14.74 million. The trend of woven fabric products export value increased by 3.26% in the period of 2011-2015.
Export News June 20166
The export value of Indonesian woven fabric products showed an increasing trend of 92.46% in the period of 2011-2015 due to a significant rise in export value in 2014 at US$1.27 million from US$534,000 in the previous year. The increase showed that Indonesian woven fabric products have the potentials to be exported abroad.
Woven Fabric
Market ReviewMarket Review
Although the figure is still small, the export of woven textile products was still growing by 3.84% from 2011 to 2014.
There are a number of types of woven fabrics being exported in the world’s market. The Top 5 products are HS 590320 which groups Textile fabrics impregnated, coated, covered, or laminated with polyurethane, not elsewhere specified or included; HS 590310 which covers Textile fabric impregnated, coated, covered, or laminated w polyvinyl chloride, not elsewhere specified; HS 590390 which includes Textile fabrics impregnated, coated, covered, or laminated with
11%
6%6%4%4%4%3%3%3%
2%
54%Woven Fabric Importers in 2015
United StatesGermanyChinaUnited Kingdom
VietnamMexicoCanadaFrance
JapanHong KongOthers Countries
plastics, not elsewhere specified; HS 570330 which contains Carpets of other man-made textile materials, tufted; and HS 570320 which groups Carpets of nylon or other polyamides, tufted.
The Top 10 importing countries which can be export destinations for Indonesian woven fabric products are the United States, Germany, China, the United Kingdom, Mexico, Canada, France and Japan. The United States imported US$5.63 million in 2015.
The graph below shows the top importing countries of woven fabric products:
7Export News June 2016
Market ReviewMarket Review
According to its HS category, products under HS 590320 was the most sought for by importing countries, followed by products grouped under HS 590390, HS570330, HS570320 and HS 590310, as can be seen in the chart below:
buyers were looking for Muslim fashion products as well as derivative products such as zipper, Velcro tape, buttons, polyester yarn, fur garments, underwear, and raw material for knitwear. With interest on woven fabric products, the
Products under HS 590320 had the highest import value of US$4.17 billion in 2015 with a trend of 4.52% in the period of 2011-2014 and a growth of 5.38% from 2014 to 2015. Woven fabric products are still interesting for importing countries therefore Indonesian producers are looking to capitalize on this opportunity. The Indonesian Trade Ministry keeps looking for new market opportunities including for woven fabric products. The ministry, for example, organized an Indonesian-Turkish buying mission on March 23, 2016. Held at the ministry, the event included a dialog with 20 Turkish businessmen led by chairman of Istanbul Chambers of Commerce. From the Indonesian side, there were representatives from the Investment Coordinating Board (BKPM, trade associations and the Indonesian Chambers of Trade and Industry (Kadin). Among textile and textile products, the Turkish
buying mission can be used as an initial step to enter the Turkish market.
Another effort is improving cooperation with country members of the European Union through the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA). With the agreement, Indonesian textile and textile products will get lower tariffs which is expected to increase the export of textile and textile products to the EU region. Indonesian exporters of textile and textile products have to prepare themselves by studying the market characteristics such as consumption patterns and products in demand to enter the appropriate export market.
Indonesian exporters must also study existing EU regulations on textile and textile products, such as those on textile coloring agents especially Azo dyes which include aromatic amino acids which are
4,173,59
3,072,8
2,58
0
5
Billi
on
HS 590320 HS 590390 HS 570330 HS 570320 HS 590310
Woven Fabric Imports 2015
Export News June 20168
Market ReviewMarket Review
forbidden. Some of Azo dyes can be accepted but there are still rejections by Customs agencies and product recalls from the market. This shows that the use of Azo dyes can pose a problem if exporters want to enter the EU market. The use of flame retardants such as Tris-(2,3 dibromopropyl)-phosphate (tris), Tris-(aziridinyl)-phosphineoxide (TEPA) and Polybromobiphenyls (PBB) are not allowed for textile products which have contact with skins.
Products which use raw materials from wild plants or animals are regulated to ensure the plants and animals are not listed in the Convention on International Trade in Endangered Species (CITE) as stipulated in EU Regulation 338/97. There is also a list containing species and derivative products which are limited. Those working in the woven fabric industry should pay attention to such regulations. On one hand, the customers prefer natural products while on the other hand, the producers must pay attention to the legality of such raw materials. Not to mention that there are always environmental and ecosystem issues which often inhibit products with natural raw materials, therefore a full understanding on CITES is important.
To enter the European market, exporters can apply for certification as an introduction strategy for their products. There are several classes of certifications, or labeling, in Europe to describe the quality of products, such as Fair Trade or Ecolabel. Fair Trade is a sustainable trade system which aims to help marginalized producers, such as craftsmen, artisans, farmers, fishermen etc.; through fair payment system; proper working conditions; technical assistance such as design and bookkeeping; social programs;
equality, transparency; mutual trust; and maintaining the environment.
Fair Trade is implemented to create a sustainable economy and new market in developing markets while at the same time keeping local values and traditions. Fair Trade certification is internationally recognized with its 10 principles: creating opportunities for small producers; transparency and accountability; conducting fair trade and just payment; ensuring no child labors or forced workers are being employed; commitment to gender equality, no discrimination, and freedom to association; ensuring proper working condition; increasing capacity; promoting and disseminating fair trade and respecting environmental sustainability.
Meanwhile, buyers are looking for products which come with Ecolabel because they are certified to have applied sustainability scheme. Sustainability issue is a major one among European buyers and products stamped with Ecolabel will get greater trust from consumers. Therefore, Indonesian woven fabric products can use this strategy, of applying for Fair Trade and Ecolabel certifications; to approach export destination countries.
Some consumer segments only view textile and textile product sector as finished clothing products but woven fabric has the same potentials with other textile products. Woven fabric can become the material for finished clothing products, therefore Indonesian producers of woven fabric have to prepare the quality and quantity which fulfill the standards in destination countries to secure a wider export market.
9Export News June 2016
LIST OF EXPORTERS
TOKAI TEXPRINT INDONESIA, PTJl. Jababeka Raya Kav. B4-10, Cikarang Industrial Estate, West Java 17530, IndonesiaPhone : (62-21) 8934142Fax : (62-21) 8934801Email : [email protected] : http://tokaitexprint.blogspot.com/Product : Woven Fabrics of Cotton, Dyed Plain Weave
INDO TAICHEN TEXTILE INDUSTRY, PTJl. Raya Serang Km. 4 (Jl Kalisabi), Desa Uwung Jaya - Cibodas (PO BOX 487), Banten 15138, IndonesiaPhone : (62-21) 5520920 (Hunting)Fax : (62-21) 5523763, 55790329, 5520035Email : [email protected], [email protected] : www.indotaichen.comProduct : Woven Fabrics of Cotton, Oth. Fabrics Dyed
MERMAID TEXTILE INDUSTRY INDONESIA, PTDesa Lengkong, Kec. Mojoanyar, East Java 61364, IndonesiaPhone : (62-321) 322411, 324875-7Fax : (62-321) 322412Email : [email protected], [email protected] : Woven Fabrics of Cotton, Bleached Plain Weave
KUSUMAHADI SANTOSA, PTJl. Raya Jaten Km. 9,4 Jaten, Karanganyar, Central Java 57731, IndonesiaPhone : (62-271) 825636, 825478, 825628Fax : (62-271) 825478, 825628Email : [email protected] : www.kusumahadi-textiles.comProduct : Cotton, Carded or Combed, High Tenacity Yarn of Polyesters of Synthetic Filament, High Tenacity Yarn of Viscose Rayon of Artificial Filament, Printed Woven Fabrics of Polyester, Viscose Rayon Yarn of Artificial Filament
India (New Delhi)Embassy of the Republic of Indonesia 50-A Kautilya Marg Chanakyapuri110021Phone : (+91-11) 26114100Fax : (+91-11) 26885460Email : [email protected]; [email protected]
United Kingdom (London)Embassy of Republic of Indonesia 38 Grosvenor Square London W1K 2HWPhone : (+44-20) 74997661, 72909620Fax : (+44-20) 74957022Email : [email protected]; [email protected] United States of America (Washington DC)2020 Massachusetts Avenue, NWWashington DC 20036Phone : (+1-202) 7755200/5352Fax : (+1-202) 7755354Email : [email protected]; commercial-attache embassyofindonesia.orgWebsite : www.embassyofindonesia.org
JEDDAHConsulate General of the Republic of Indonesia Jeddah Al-Mualifin street, Al-Rehab District/5, P.O. Box 1021411Phone : (+966-2) 6711271Fax : (+966-2) 6730205Email : [email protected]