Friday, February 22, 2013

Swot Analysis Of Indonesia's Textile Industry

SWOT Analysis - Indonesia

1

Introduction
Textile plays a key affair in driving the economy
Globally, the country accounts for








13% of viscose fix fiber production
4% of polyester staple fibers
4% of polyester filament yarn
2% of polyamide and
0.03% of cotton
Textile industry employs 1.8 million workers.
In 2007, dress and textile exports reached $10.

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3
billion, making Indonesia
12th largest textile exporter
8th largest habilitate exporter globally
2

Strengths
A primary strength - vertically integrated cut back and
textile industry
Has a large domestic grocery store; helps in offsetting any
export slump
Is politically stable and is bankrupting policies to attract
foreign investment
likewise has a large labor supply
Abundance of natural resources
Indonesias banking sector remains healthy
There have been no regime bailouts
Credit is abundant
There have been no widespread business sector closings
3

Weaknesses
Aging machinery that limits production and
saps energy
Rising energy costs
Relatively higher(prenominal) interest rates than many
of its neighbors
Lack of supportive infrastructure
Absolute dependence on imported cotton
for both its export and domestic needs
4

Opportunities
ASEAN continues to develop as a textile and garment
manufacturing hub, so opportunities for global and
regional exports should improve
Initiatives such as a modernization scheme shows the
politics is beginning to pay more attention to the
sector
Has been able to weigh advantage of opportunities when
they appear
In 2005 and 2006 when the US and EU imposed safeguard
quotas on several textile and clothing products from China,
Indonesia used the action to subjoin its exports to both regions

The countrys massive domestic market offers an
obvious opportunity
5

Threats
Rampant smuggling in the region
Lower-priced products from China poses serious
competition
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