The Ministry of Industry projects that the textile and textile product (TPT) industry will grow 5 percent this year, after being unable to optimize expansion in 2021 due to the pandemic and strict restrictions. Director of Textiles, Leather, and Footwear at the Ministry of Industry, Elis Masitoh, said that increased investment and exports will be the engine of industrial growth this year. "Similarly, domestic demand has started to improve with face-to-face schools, offices starting to enter, and malls and tourism starting to return to normal," Elis told Bisnis, Tuesday (11/1/2022). Meanwhile, throughout 2021 Elis predicts the realization of growth will be 1.37 percent. This figure increased from the projection in early 2021 of 0.93 percent, driven by improved performance and market conditions in the last quarter of 2021. In the third quarter of 2021, the textile and apparel industry still recorded a year-on-year contraction of -3.34 percent. However, the contraction rate has shrunk from the second and first quarters of last year, namely -4.54 percent and -13.28 percent, respectively.
On the other hand, the footwear sub-sector is also projected to experience optimal recovery this year due to the vibrant export market. Elis said that there will be a flood of orders to the domestic footwear industry this year and in 2023. This year, one of the brands added orders to 67 million pairs and will increase again next year. Until the third quarter of 2021, the Statistics Indonesia (BPS) recorded that footwear production reached 1.03 billion markets from a capacity of 1.49 billion markets per year. The growth of the footwear industry in the quarter was recorded at 18.12 percent, with a 27.3 percent increase in exports to US$4.80 billion. "The increase in exports was driven by government policies in handling Covid-19, by continuing to operate export-oriented production. This creates trust from the buyers, so they increase their production in Indonesia,” explained Elis.
