Indonesia's textile industry said exports will decline next year due to the impact of European and American markets

An economist at Indonesia’s Danamon Bank said that Indonesia’s export-oriented industries will be affected by the global economic slowdown, resulting in sluggish demand. Commodities mainly exported to overseas markets will face price declines.　　 Industries that rely on imported raw materials for production may suffer from dollar liquidity and trade financing issues. Industries that rely more heavily on imported bulk raw materials are more likely to be affected, such as pharmaceuticals, textiles and garments, electronics, shoemaking, and paper products.　　 Industries that use local raw materials or sell to the local market, such as cement, edible oil and sugar, are less susceptible to impact.　　 Another economic analyst also pointed out that industries that rely on imported raw materials and intermediate products will be affected by exchange rate fluctuations. Conversely, industries that use local materials or domestic demand are less susceptible to exchange rate fluctuations. The Indonesian Textile Association (API) said that due to the economic slowdown in the European and American markets, orders from Europe and the United States have shown signs of decline in September this year, and may gradually decrease in the next few months. The association will schedule export growth this year. The target is lowered from 24% to 20%, and the export growth target for next year is set at 5%, which is lower than the previous annual growth target of 20%.　　 Indonesia Electronics Industry Association (GABEL) stated that global economic uncertainty gradually affects consumer willingness, and global demand may decrease in the next year, especially in the European and American markets.