Jakarta (Indonesia Window) – Indonesia’s export value of fabric (Harmonized System Code 56 – 60) which is part of the textile and textile products industry in the January – March 2022 reached 146.55 million US dollars, or an increase of 14.63 percent year-on-year (yoy) compared to the same period in 2021.

"In general, the increase in fabric sales was driven by the recovery in demand for apparel, along with social activities that returned to normal after the control of the spread of the Omicron variant," Head of the Indonesia Eximbank Division (IEB) Institute of the Indonesian Export Financing Institute (LPEI), Rini Satriani, in a written statement received here on Wednesday.

Meanwhile, during the first quarter of this year, the volume of cloth exports was recorded at 30,930 tons, an increase of 7.57 percent (yoy), or an increase of 83.93 percent.

This increase was supported by layered woven fabrics (HS Code 59) which increased by 43.19 percent (yoy), followed by an increase in sales of cotton wadding and rope (HS Code 56) by 6.25 percent (yoy), as well as knitted fabrics (HS Code 60) of 12.44 percent (yoy).

"The use of e-commerce platforms in the midst of a pandemic is also a positive catalyst because export sales of Indonesian fabrics are supported by a larger platform than before, so as to increase the consumer base," Rini said.

IEB Institute data shows, during the first quarter of 2022, the value and growth of exports to the five export destination countries for Indonesian fabrics were Japan at 28.33 million U.S. dollars or grew by 13.78 percent (yoy), Vietnam at 18.15 million dollars with growth of 11.50 percent (yoy), the United States of America at 11.07 million dollars, or an increase of 11.91 percent (yoy), and India at 10.25 million dollars, or a growth of 31.05 percent (yoy).

"Demand is increasing high from Japan following the seasonal effect in the form of the need for clothing production for spring and the easing of activity restrictions as of March 1, 2022," Rini explained.

He added that the increase in demand from Vietnam was due to controlling the spread of the Covid-19 infection, as well as the diversion of orders from China to Vietnam as one of the fabric producing countries.

Meanwhile, for the same period, Indonesian cloth exports to South Korea decreased by 11.5 percent or 8.23 million dollars due to high cases of Covid-19 infection during the first three months of this year.

Separately, LPEI's Managing Director for Institutional Relations Chesna F Anwar added, LPEI has an SME Export Special Assignment program which is intended for export-oriented businesses to maintain business continuity.

“This program is part of the national economic recovery that the government has given us. We hope that business actors can use this program," she said.

Reporting by Indonesia Window