Japanese companies are increasing textile and clothing production in Indonesia, which makes the country a prime alternative to China as a location for such operations.
Besides lower labour costs, which are a quarter of those in China, Indonesia offers better roads, ports and power supply infrastructure than other alternatives, such as Myanmar and Bangladesh.
In 2012, Indonesia accounted for just 3% of Japan’s imports of textile products, far lower than China’s 74%.
For the full story, see the January 2014 edition of Textiles South East Asia. Not a subscriber? Subscribe HERE