One of the developing markets in Southeast Asia, Indonesia does not trust Chinese textile machinery tools and focuses on close co-operation with Turkey to reduce dependance on this field. Recently, Indonesia and Turkey, whose political relations intensified, signed a commercial co-operation agreement amounting to U.S. $ 5 billion within the next 5 years.
Indonesia Small and Medium-Sized Enterprises (SMEs) Director General Euis Saedah stated that China was the market leader in textile and textile products. For this reason, remarking that textile production competition gained importance in the local market, Saedah said that firms should increase the quality. According to Saedah, small and medium-sized enterprises (SMEs) is based on the technology needs to be raised so that it can compete with other countries. Emphasizing that management and innovation concept in SMEs was still not so good; he added: “ In this branch of industry, there has been low data since last year.”
Explaining that improving competition and increasing the quality of the products brought a breath of fresh air to textile machinery sector, Saedah stated: “Our textile machines are quite old and might create problems in terms of use. However, despite the negative data, confidence in imports from China is decreasing. The government lost confidence in China's textile technologies.”
Previously, a co-operation agreement, that will amount to $ 5 billion in the next 5 years, was signed for industrial and technological developments and in order to increase trade between Turkey and Indonesia. Based on a statement by the Indonesian Ministry of Industry, it was expressed that the agreement can be deemed relatively small considering other studies between the two countries. Examining export and import figures, Turkey seem to be quite ahead in import. According to the data of 2010, Turkey's imports from Indonesia was approximately U.S. $ 1.48 billion, while Turkey's exports to Indonesia was only U.S. $ 250 million. In 2010, trade relations with Turkey contributed to the economy of Indonesia by 0.8%.
With the new study, this ratio is expected to increase. Making comments on the issue, Indonesian Industry Minister MS Hidayat said that they wanted to increase the income of creative industries by 7% per year and he underlined that they aimed at capturing an export volume of around U.S. $ 13 billion per year.
