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Large Indonesian Cotton Mills Expanding Operations

Large Indonesian Cotton Mills Expanding Operations

01 May 2014
USDA Foreign Agricultural Service

INDONESIA - The Indonesian Ministry of Industry reported that Indonesia was the world’s 9th largest textile exporter, with total exports valued at $12.5 billion in CY 2012.

January - June 2013 textile exports are valued at $6.4 billion. Indonesia’s textile and textile products industry is labor intensive, employing approximately 1.5 million workers, or 1.4 per cent of Indonesia’s workforce.

The effects of 2011 cotton price volatility have started to subside and some large mills are expanding operations. Although demand for Indonesian textile and textile products has slowed in Europe, CY 2013 exports to Japan have increased 35 per cent.

Indonesian cotton yarn exports have increased to 138,000 MT for the January – November 2013 period compared to 77,000 MT in CY 2012. The weakening rupiah helped increase cotton yarn exports through the end of CY 2013.

However, the rupiah’s appreciation since January 2014, combined with lower cotton yarn prices on the international market, will slow the growth of Indonesian cotton imports and consumption in MY 2013/14.

Since MY 2011/12, Brazil took over the United States’ position as the largest supplier of cotton to Indonesia.

Further Reading

You can view the USDA GAIN: Indonesia Cotton and Products Annual 2014 report by clicking here.

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