global textiles portfolio

Global Textiles PortfolioNatalie Neal

Indonesia

Map of Indonesia

Proximity • Indonesia is across the Pacific Ocean from

the United States• 14978.57 Kilometers from the United States• 9307.25 Miles from the United States

Demographics• Area: 2 million sq. km. (736,000 sq. mi.)• Population: 240.3 million.• Capital--Jakarta (est. 9.6 million)• The terrain is more than 17,500 islands; 6,000 are

inhabited; 1,000 of which are permanently settled.

• Nationality: Indonesian.• Main ethnic group is Javanese (40.6%) • Main religion is Islam (86.1%)

Demographics• Karawang is the main polyester producing

area. Indorama Polyester Industries Indonesia manufacturing facility is located in Karawang.

• Karawang– the capital of the Karawang Regency of West Java– located 32 miles east of Jakarta– Area: 1,737.30 km2 (1,083.48 sq mi)– Population: 2,150,610

Say “Yes” to PolYESter

PolYESter• Patented in 1941

• Man-made fiber: naturally occurring plant materials mixed with synthetics

• Revamped in the early 80s as luxurious fiber because of different weaving, spinning & finishing techniques

• Two major manufacturing capacities: 825,000 tons of Polyester Filament yarn & 500,000 tons of Polyester staple fiber

Why PolYESter in Indonesia?• One of the few countries leading the ASEAN in economic recovery

• Vertically integrated manufacturing for peak efficiency

• Full “Green Label” usage

• 2010 6.1% growth & shifting economic strategies to reflect sustainability

• Rupiah strengthened by 4.2% & higher interest rates help lessen the inflation pressures

• 2010 led a strong recovery of Polyester exports to the U.S. at $11.32 billion

PolYESter Filament Yarn• Formed by using faster spinning speeds

• Round & Trilobal Cross sections

• Modern applications used to add texture to the yarn

• A finished yarn used in decorative pieces

• Excellent abrasion resistance, durability & color fastness

• Fabric made from the yarns is a lot like pure silk

PolYESter Filament Yarn

PolYESter Staple Fiber• Short curly fibers

• Suitable to mix with cotton and other man-made fibers

• An essential component for non-woven fabrics

• Unique because of its versatile nature

PolYESter Staple Fiber

Features of the new PolYESter

• Self extinguishing

• Permanent flame retardant

• Environment-friendly

• Quick dry & Ventilation

• Soft on any skin type: FDA approved

• Permanent antimicrobial performance

PolYESterPolYESter

Sportswear

Outdoor wear

Casual wear

Leisurewear

Professional Wear

US- Indonesia Relations• Positive relationship• Share a common goal of maintaining

peace• President Obama launched the U.S.-

Indonesia Comprehensive Partnership in November 2010.

US- Indonesia Relations

• Still negotiating free trade• 5% tariff rate range for polyester

Political Climate• Indonesia's political system is a

constitutional democracy.• A president is elected in a general

election every five years• The legislature is made up of two

bodies– the House of Representatives (DPR) – Regional Representatives' Assembly (DPD)

Additional Information

• Also, Member of G20 major economics and

East Asia Summit

• Signatory of Cairns Group, World Trade

Organization.

• Geography: 5,120 kilometers archipelagic

country which is easy for exporting and

importing

Information Cont.• Low Asset Prices

$1= 8992 IDR

$1= 6.3 CNY

• 27th biggest exporting country

• 18th largest by GDP

15th largest by Purchasing Power parity

Information Cont.• “Master Plan for the Acceleration and

Expansion of Indonesian Economic Development”(MP3EI)

- set by the central government - for the period of 2011-2015 - spreading the investment across

archipelago - Rp 4,000 trillion are used to develop 6 major economic corridors.

References• Foreign Investment and Company Establishment (2011, Oct 11) Living in Indonesia.

Retrieved from:http://www.expat.or.id/business/companyestablishment.html

• Making the New Indonesia Work for the Poor (n.d) Retrieved from: http://siteresources.worldbank.org/INTINDONESIA/Resources/Publication/280016-1152870963030/2753486- 1165385030085/Overview_standalone_en.pdf

• Geography. (n.d) Retrieved from: http://countrystudies.us/indonesia/28.htm• Background note: Indonesia. (2011, June 03). Retrieved from http://

www.state.gov/r/pa/ei/bgn/2748.htm• Indonesia. (2011, August 24). Retrieved from http://

web.ita.doc.gov/tacgi/OverSeasNew.nsf/alldata/Indonesia• Indonesia. (2008, December 04). Retrieved from http://

www.asean.fta.govt.nz/indonesia-political-situation

References Cont.• Indorama Ventures. Polyester facilities.

Retrieved from http://www.indoramaventures.com/business_polyester_facilities_skfiber.php

• US Department of State. Background Note: Indonesia. Retrieved from http://www.state.gov/r/pa/ei/bgn/2748.htm.

• http://www.distancefromto.net/distance-from/United+States/to/Indonesia.