Government of Indonesia Lays Emphasis on Human Resource Development in Textile Industry

The Government of Indonesia is laying emphasis on human resource development in the textile industry, as the industry is one of the mainstays of commodity manufacturing industries and an important component of national economic development, Ansari Bukhari, Secretary General of the Ministry of Industry, said while inaugurating a workshop at the Industrial Training Centre (BDI) in Jakarta, according to press release from the Ministry of Industry.

The Indoneisan textile industry contninues to deliver a surplus trade balance and it plays a major role in the process of industrialization, as the products produced from raw materials like fibres to consumer goods like apparel have good inter-industry linkages, Mr. Bukhari said.

From January to October 2013, Indonesia exported textiles and garments worth US$ 10.62 billion, registering a growth of 2.18 percent year-on-year. Textiles and apparel account for 11.39 percent of total non-oil exports from Indonesia.

In the third quarter of 2013, Rp. 1.9 trillion was invested in the Indonesian textile industry by both domestic and foreign firms, while employment reached 3.8 million by the end of the third quarter of 2013, showing a growth of 2.6 percent year-on-year.

Mr. Bukhari said that the growth prospects of the Indonesian textile industry would be better in future due to high demand in the domestic market and the rising world consumption.

At present, the share of the Indonesian textile industry in the world market is only 2 percent, so there is still a very large opportunity for the textile industry to expand in the world market, he added.

He said the Ministry of Industry has made strategic efforts for the development of the national textile industry, and one such effort is the Program for Restructuring of Machinery in textile and clothing industry, since 2007. Under the program, rebates and interest subsidy is given to textile companies for upgradation of machinery and equipment.

Under the program, Rp. 9.9 trillion investment was injected into the textiel industry from 2007 to 2012, while the production has increased by 15-34 percent, energy consumption reduced by 5-9 percent, and productivity increased by 6-10 percent, the release said.

Along with the improved performance, there is also a need for increased human resources in the textile industry. In order to cater to the manpower needs, the Ministry, in collaboration with the Textile Industry Association (API), has conducted skill development programs since 2011.

Accordingly, in 2013, 600 people were trained in garment making and were absorbed and placed in several garment units that have signed a memorandum of understanding with the BDI Jakarta.

The Ministry representative said certification of competence becomes critical in view of the ASEAN Economic Community (AEC) that will take effect at the end of 2015. The AEC will open opportunities for workers from other ASEAN countries to compete with Indonesian labor in order to get a job in the country.