Monday, 16 September 2019 | 11:55 WIB

Sritex Eyes Textile Export Growth amid US-China Trade War

Sritex Eyes Textile Export Growth amid US-China Trade War (netralnews)

SOLO, NETRALNEWS.COM - Integrated textile company PT Sri Rejeki Isman Tbk (IDX:SRIL), also known as Sritex, has expressed optimism that it could reduce imports and increase textile exports amid uncertain global economic situation due to the trade war between the United States (US) and China.

Iwan Kurniawan Lukminto, Vice President Director of Sritex, said that with the trade war, it was hoped that China could eye engaging business with Indonesia, and could involve more local content, including raw materials to finished goods.

"It can be produced here [in Sritex], thereby suppressing imports and increasing exports," Kurniawan said at a press conference to coincide with Sritex's 53rd Anniversary in Sukoharjo, Friday (08/16/2019).

Kurniawan said it should be underlined also that the US-China trade standoff had a negative impact on Indonesia, namely Chinese goods that would enter Indonesia illegally or not be controlled. Therefore, according to him, there needs to be communication with the government to oversee imported goods, so that the textile industry is protected.

"Moreover, Indonesia is an attractive market with a population of 250 million. This is a big market for the transition of production from China to America," he said.

On the same occasion, Sritex President Director Iwan Setiawan Lukminto added that the opportunity that could be taken during the US and China trade wars was to boost exports until the end of the semester.

In addition, there are also opportunities for bilateral cooperation with the United States and Indonesia. Indonesia can use more cotton from the US, and certainly can export more products to the US, thus pushing up the growth of the textile industry in Indonesia.

"One of the opportunities is to improve the textile industry in Indonesia. Regarding Sritex's outlook, everything is still on target, and the trend by December is still positive," he said.

In the first semester of 2019, Sritex's gross sales rose by 16.16% compared to the same period in 2018.

Sritex claims the sales hike was an achievement above the industry average, given the trade war that still worried the market. The strong sales was supported by the dominance of yarn sales which contributed 40.1 percent of total sales up to the first half of 2019.

PT Sri Rejeki Isman Tbk

PT Sri Rejeki Isman Tbk (IDX:SRIL) is an integrated national textile and garment company. The company has four main production processes: Spinning, Weaving, Finishing, and Garment. PT Sri Rejeki Isman Tbk, which was established by the late HM Lukminto in 1966, has facilities located in Semarang and Sukoharjo, Central Java. Its customers are currently spread all over the world, including in Asia, Europe, America, Australia, and Africa.

SRIL was listed on Indonesia Stock Exchange in 2013, and is the only textile company listed in the LQ45 Index. The company was also included in IDX 30 which was announced in January 2017, and received an award as one of the IDX Top 10 Blue Chips 2016, as well as The Best Blue Chip in 2017. The prestigious awards were based on SRIL's stock performance on liquidity, growth, and shareholder depth.