Indonesia’s garment production slows in Q3

According to data released by the Indonesian Central Bureau of Statistics, Indonesia’s manufacturing output has slowed down, especially the garment manufacturing industry. Data show that Indonesia’s manufacturing output in the third quarter of 2008 grew only 1.6% compared with the same period in 2007.
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Indonesia’s manufacturing output grew by 5.85% and 3.3% respectively in the first and second quarters. Among them, the textile and garment industry, the largest export-earning industry, was hardest hit by the global financial crisis triggered by the U.S. subprime mortgage crisis. In the third quarter, output A decrease of 30.61% compared with the same period in 2007.
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Industry experts say the decline in growth is due to sluggish exports, and believe that the global financial crisis has led to economic recession in the United States, Europe and other countries, which is the main reason for the slowdown in Indonesia’s manufacturing growth. For example, Indonesia’s textile and garment exports decreased by US$30.2 million in September.
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Indonesia’s export target for 2008 is US$11 billion, which has reached US$5.11 billion in the first half of the year, and it is possible to achieve the established export target by the end of the year. Industry experts said that there are still difficulties in reaching the export target because Indonesian textile exports to the United States account for almost 33% of all textiles. The United States is the origin of the current global financial crisis. They believe that the real recession effect will be reflected in the fourth quarter, and Will continue until 2009.