Indonesia: The Rapid Development Of Polyester Staple And Viscose Industry Has Become A Highlight.

In 2010 ~2014, the output of nylon filament in Indonesia was relatively stable, about 21 thousand tons, 20 thousand tons, 17 thousand tons, 21 thousand tons and 19 thousand tons respectively, and the production capacity remained basically unchanged, about 32 thousand tons.

The textile industry plays an important role in the national economy of Indonesia, providing 1 million 530 thousand jobs, equivalent to 12% of the total number of employed people in the manufacturing industry.

In 2014, Indonesia's textile exports amounted to US $12 billion 750 million, exports amounted to 2 million 180 thousand tons, imports amounted to US $8 billion 390 million, imports amounted to 1 million 980 thousand tons, and export target in 2015 was US $13 billion.

The per capita consumption of domestic textiles in Indonesia has increased from 5.84 kg in 2010 to 6.82 kg in 2014.

Specific to the chemical fiber industry, in 2014, Indonesia's total chemical fiber production capacity was 2 million 340 thousand tons, a total of 19 manufacturers, the output of about 1 million 800 thousand tons, the average operating rate of 77%, of which polyester staple fiber, viscose industry's rapid development has become a highlight.

In the past 5 years, the volume and output of polyester staple fiber and viscose industry have been increasing rapidly, and the volume of imports has also increased rapidly, thanks to the sustained and rapid growth of consumption.

In the past 5 years, the development of each chemical fiber sub industry is different.

From the raw material situation, in 2010 ~2014, Indonesia's PTA capacity was maintained at 2 million 188 thousand tons.

The current PTA production can be self-sufficient, and exports and imports are relatively small. The operating rate of the 3 major producers has always been maintained at 95%~100%.

The capacity and output of MEG were maintained at 220 thousand tons and 210 thousand tons respectively. Consumption increased year by year, consumption in 2013 was 600 thousand tons, consumption in 2014 was 640 thousand tons, the growth rate was about 6.7%, and about 68% of MEG was dependent on imports.

From the perspective of capacity and output, the output of polyester staple fiber increased by 507 thousand tons, 527 thousand tons, 555 thousand tons, 583 thousand tons, 650 thousand tons (compared with 2010 growth rate 28.2%) in 2010 ~2014, and the capacity increased year by year, about 580 thousand tons, 580 thousand tons, 602 thousand tons, 620 thousand tons and 808 thousand tons respectively (compared with 2010 growth).

The production of polyester filament has been slightly oscillating in the range of 615 thousand tons ~63.2 million tons; capacity has maintained at 833 thousand tons in 4 years, and increased to 954 thousand tons in 2014.

In 2015, Indonesia's total polyester production capacity (polyester staple and polyester filament) is expected to reach 1 million 760 thousand tons.

In 2010 ~2014, the output of nylon filament in Indonesia was relatively stable, about 21 thousand tons, 20 thousand tons, 17 thousand tons, 21 thousand tons and 19 thousand tons respectively, and the production capacity remained basically unchanged, about 32 thousand tons.

In the same period, the output of viscose fiber increased year by year, about 386 thousand tons, 400 thousand tons, 435 thousand tons, 456 thousand tons, 505 thousand tons (30.82% more than in 2010), and production capacity also increased rapidly, about 400 thousand tons, 435 thousand tons, 450 thousand tons, 500 thousand tons, and 542 thousand tons respectively (compared with 2010 growth).

From the consumption point of view, in 2010 ~2014, the consumption of polyester staple fiber in Indonesia increased year by year, about 514 thousand tons, 570 thousand tons, 592 thousand tons, 626 thousand tons and 670 thousand tons (compared with 30% growth in 2010), and is expected to continue to grow at a rate of 4% per year. The consumption of polyester filament has also increased year by year, about 432 thousand tons, 476 thousand tons, 534 thousand tons, 530 thousand tons, and 534 thousand tons respectively. The consumption of nylon filament has been relatively stable, and has been lingering in the range of ~1.3 tons. The overall consumption of viscose fiber has shown a rapid growth trend, which is about 1 tons, tons, tons, tons and tons respectively (compared with 2010 growth).

From the import and export situation, in 2010 ~2014, the import volume of polyester staple fiber in Indonesia increased rapidly, which was about 75 thousand tons, 116 thousand tons, 108 thousand tons, 136 thousand tons, 140 thousand tons (86.67% more than 2010), and export volume showed an oscillating growth trend, about 68 thousand tons, 73 thousand tons, 71 thousand tons, 57 thousand tons, 120 thousand tons respectively.

The import volume of polyester filament in Indonesia has increased rapidly year by year, about 32 thousand tons, 47 thousand tons, 83 thousand tons, 74 thousand tons, 89 thousand tons (178% more than in 2010), and export volume has decreased year by year, about 232 thousand tons, 201 thousand tons, 169 thousand tons, 169 thousand tons, 164 thousand tons respectively.

The growth of imports in 2010 ~2012 was particularly fast, which was 18 thousand tons, 30 thousand tons and 107 thousand tons respectively. In 2012, the growth rate was 494% in 2010 compared with that in 2010. In 2013, ~2014 increased to 71 thousand tons and 76 thousand tons respectively. In the 5 years, the export volume of viscose increased by about 178 thousand tons, 199 thousand tons, 185 thousand tons, 211 thousand tons, and 185 thousand tons respectively.

Textile industry revitalization plan to promote industrial development

At present, Indonesia's textile industry is also facing some challenges: first, how to develop new products and how to build a competitive vertical industrial chain in all sectors of the textile industry (upstream, middle and downstream); two, how to expand export markets on the basis of developing better quality and competitive products; and three, how to improve efficiency and productivity.

In addition, the global industry is facing challenges. Indonesia is no exception. The continuous improvement of energy costs and labor costs is testing the sustainable development of the Indonesian textile industry. Indonesia must step up the development of energy-efficient and environment-friendly production processes and equipment.

For these challenges, the Indonesian government should take certain measures: first, we should increase new investment, especially to provide more modern facilities and better financing arrangements for the middle reaches industries.

The Indonesian government launched the revitalization plan of the textile industry in 2007, benefiting from the plan.

The aging machinery has been replaced successfully. At present, the project is still being implemented to promote the modernization of the textile industry.

In 2015, Indonesia's policy priorities were expected to be more focused on the weaving and knitting industry.

In addition, corresponding policies should be formulated for the energy sector to have a positive impact on the prices of chemical fiber products.