JAKARTA (Yosefardi) – Garment manufacturer PT Pan Brothers Tbk (PBRX) urges the government of Indonesia to boost bilateral and multilateral agreements with overseas countries as the destination of garments export from Indonesia.
The said agreement will help support the export of Indonesian garments. By 2020, Indonesia targets its textile products to supply about 5% of global demand, compared to current 1.8% supply.
Indonesia is the fourth biggest market for textile products. Since 2009, Indonesian textile industry posted average growth of 12% per year.
During first quarter of 2015, Indonesia’s export for textile and its products grew by 18%. But exports to United States and Europe dropped 17% and 39% respectively. In domestic market, textile sales jumped 57%.
PBRX plans to add loan facility to US$270 million from initial plan of US$240 million, as it is set to get syndicated loan from foreign banks this month end. The loan will be used to fund its expansion for production facilities within next three years.
For this year, PBRX allocated capital expenditure (capex) of US$20 million or Rp242 billion, 41.1% lower than last year’s capex of US$34 million or Rp400 billion. PBRX plans to build 7 garments factories until 2016.