“ Indonesia has the upper-hand in garment manufacturing due to the country’s years-long involvement in this industry. As such, we have one of the industry’s most adept seamstresses whose skills would be difficult to be replaced by machinery. ”
Before establishing Textile Karunia Makmur, I previously worked at a textile company that focused on the raw materials for manufacturing clothes. My working experience at the time provided me with in-depth knowledge on clothing manufacturing techniques, marketing schemes, machinery use as well as the methods in choosing the best materials. In 1988, I began trading garments; however, due to the unsustainable nature of the business, I decided to setup my own clothing manufacturing company where we currently employ approximately 100 employees that are based in Jakarta. At the time, my friend suggested that I start my own factory as it would allow me to produce high-quality products upon establishing an industry presence, other companies would then directly reach out to Textile Karunia Makmur to manufacture their apparel.
From 1995 – 2002, Textile Karunia Makmur began massive exports to Europe namely France, Denmark, and the Netherlands. Our company also exported our products to the United States during that period. Due to increased competition from the Chinese market, I changed the company’s strategy and began focusing on the Indonesian market given Indonesia’s robust consumer base and potential. To date we manufacture apparels for the Hush Puppies, Polo Ralph Lauren, and Hammer brands in Indonesia.
Product development and innovation are key principles that we continue to uphold at Textile Karunia Makmur and while we continue to pursue it, for the time-being we are highly-focused on the various ways to navigate through the challenging economic condition taking place in Indonesia. Moving forward I am interested in expanding the company’s network reach, however I would like to tread carefully in this regard given the increasing consumer trend towards e-commerce facilities which can potentially cut off distribution channels.
The short-term outlook will remain a challenge for our company understanding the economic slowdown on a global scale. Nevertheless, we have seen support from the Indonesian government to improve the country’s economy such as through lower interest rates that was recently implemented. This measure signals that an economic rebound is on the horizon for Indonesia particularly due to the strong demand from the local market. Realising this, Indonesia is set to remain ahead in terms of economic growth compared to our regional neighbours such as Malaysia and Singapore.
Thus whilst I understand that difficulties will remain for our company and the industry in the short-term, I am confident of the long-term outlook. As Indonesia continues with its infrastructure projects in addition to local businesses that are increasingly reaching out to consumers, the long-term outlook for Indonesia as a whole seems promising.
I acknowledge President Joko Widodo’s one-of-a-kind strategy in governing the country that sets it apart from previous administrations. The current administration has implemented a number of programmes which encourage long-term economic growth including infrastructure projects and the disbursement of village funds. It is important to note that the measures by the Joko Widodo government will not occur overnight, but I am confident of future positive impacts once the programmes are completed.
Through a prospective membership in the TPP, Indonesia would then become part of a population of around 600 million individuals. This therefore presents us with a number of business opportunities yet Indonesian companies would have to create a plan where they will truly benefit from the TPP membership.
In my view, Indonesia would certainly benefit from the TPP particularly because of the country’s labour market. Furthermore, Indonesia has the upper-hand in garment manufacturing due to the country’s years-long involvement in this industry. As such, we have one of the industry’s most adept seamstresses whose skills would be difficult to be replaced by machinery.
At Textile Karunia Makmur, we remain open to partnering with international companies who are in search of a trusted local partner with all-encompassing facilities to manufacture garment and clothing. The garment and textile manufacturing industry is already well-developed in Indonesia and as such, we are able to offer overseas companies the services to support their business operations.
By maintaining efficient manufacturing operations as well as upholding our stringent quality control standards, our company is therefore well-known in Indonesia for the production of polo shirts and durable garments. As a company, we remain supportive of clothing brands that are in search of high-quality apparel which is our area of specialisation.