Minister of Industry Mohamad S Hidayat, Indonesian textile products admitted difficult to compete with China’s products cheap. Therefore, the necessary steps to break the ongoing national textile industry can produce efficiently in order to increase competitiveness.

“We are hard to rival products (textiles) China, especially in terms of relatively low prices,” he said at the inauguration of the restructuring program expansion textile machinery and textile products (TPT) in Bandung, West Java, on Sunday (31.1.2010).

He said there were several factors, especially in the field of production and distribution that led to China’s TPT industry is more competitive now compared to Indonesia. These factors, among others, China has the raw materials of cotton, while 99.5 percent of Indonesia to import cotton to meet the needs of textile raw materials.

In addition, he added, China has a chemical raw material industry dye TPT (Dyestuff) is quite a lot, whereas Indonesia most needs are still imported pigments. Similarly, the supply of textile machinery. China, he said, has a textile machinery industry is quite good, while Indonesia had to import the machine.

“China has a commercial interest rates are more promising than Indonesia. In addition, China implemented a tax rebate incentives for export industries,” said Hidayat.