The US-China trade war has not benefitted Indonesia in the short term, but in the long run, Indonesian mills will be more competitive and can enjoy a surge in sales, as per Zahid Nazir, GM, sales and marketing, PT Argo Manunggal Triasta. The impact of currency depreciation is not significant either as raw material or fibres are imported at US dollar rate.

The Indonesian government is also coming in support of the country’s textile industry by imposing strict policies and incentivising textile companies. “The government has imposed strict policies for illegal imports. Incentive plans for upgrading machines have also been provided. Continuous engagement between the government and textile mills for competitive energy prices, port fees, logistic cost and tax incentive has taken place,” Nazir said in an interview with Fibre2Fashion.

Talking about the effects of the pandemic on the Indonesian textile industry, he said that the mills have been resilient in adapting to changes. Many of them converted production to health-related products including masks, medical gowns, hospital wear etc.