RECIPING UP NEW MARKETS
Exports worth US$ 4.6 billion last year were a significant source of income for Indonesian cotton manufacturers, which is a significant source of income for them.
However, the Indonesian Textile Association warned that after the US announced steep taxes to tackle trade imbalances, require could drop by as much as 30 %.  ,
The sector is now desperately looking for new areas.
” Southeast Asia and its surrounding areas have extremely large market potential,” according to Danang Girindrawardana, the agency’s executive producer.  ,
” We haven’t tapped into them effectively because Indonesia has grown weary of or be obstinate by the world’s existing businesses. We have fallen for neighboring nations, which may be involved in the import-export operation of textile and garment goods, as a result.
In light of the uncertainty surrounding the world economy, Indonesia is developing a White Paper to assist regional manufacturers in their collaboration.  ,
The nation is in the lead of the ASEAN ( Association of Southeast Asian Nations ) Federation of Textile Industries, which stands for the objectives of Southeast Asia’s textile and clothing companies.
Trump’s taxes have likewise rekindled calls for Southeast Asia to boost domestic trade to lessen political shocks.
Non-tariff obstacles are on the rise and present new challenges for local integration, according to observers, despite nearly all intra-bloc tariffs having been lifted.  ,
According to International Economic Association secretary-general Lili Yan Ing,” some non-tariff measures can also serve as barriers, particularly when it comes to the procedures ( and ) obtaining the licensing.”  ,
” That’s things that ASEAN and I can work together on in terms of simplifying methods, licensing, and how to get specific credentials to enhance intra-ASEAN trade.”
Airlangga Hartarto, Indonesia’s Coordinating Minister of Economic Affairs, led a group to Washington in April to demand better trade conditions.
In order to promote new market access and promote trade, Jakarta is likewise accelerating international cooperation, such as the Comprehensive Economic Partnership Agreement between the Indonesia and the European Union.  ,
The free trade agreement agreements are expected to wrap up this season, having begun in 2016.
Companies are urging stronger shelter for labor-intensive companies, which have long experienced an influx of low-cost imports from China, while the state works to open up new markets.
Businesses told CNA that the condition is still uncertain despite the fact that conflicts in the US-China trade conflict may have eased a little.
Growing concerns are that Taiwanese producers might divert extra supply to Indonesia, causing local markets to flood and put even more pressure on domestic manufacturers.
” We are currently living in a time when nothing is certain. However, I’m convinced that demand will increase once more, which likewise opens up a window for businesses that can supply the goods required,” Leonardi said.
” I’m also enthusiastic because this kind of situation won’t last forever,” I said.