Intra Industry Trade in Indonesia: Case of The Textile and Textile Product Industry

Revinda Yonita Permata Sari; Lilis Yuliati; Siti Komariya

Volume : VIII, Issue : V, May - 2019

Intra Industry Trade in Indonesia: Case of The Textile and Textile Product Industry

Revinda Yonita Permata Sari, Lilis Yuliati, Siti Komariya

Abstract :

This study aims to see the intra–industry intensity of trade, especially in the textile goods sector between Indonesia and China. The result shows that Intra–textile textile trade intensity between Indonesia and China, from 2000–2013 based on the ISIC 321 category (textile industry) obtained by Indonesia and China intra–industry trade, with index value 53.9%. Suggestion to the The government is expected to be able to boost the performance of exports and consumption of the domestic community, because so far Indonesia‘s economic growth has been driven more by the performance of exports and household consumption which is still quite strong; Policies regarding investment licensing must be further simplified and there is a guarantee of the availability of energy supplies for the textile industry machinery. The government must also try to increase investment in the textile industry sector especially to modernize old or worn machines so that the textile industry can expand production.