Indonesia's textiles exports to Malaysia have shown a consistent decline over the years. From 2013 to 2023, the export value decreased from $173.72 million to $74.906 million, indicating a significant downward trend. The year-on-year variation has mostly been negative, with notable declines in 2017 (-26.37%), 2020 (-21.56%), and 2023 (-6.16%). The compound annual growth rate (CAGR) over the past five years (2019-2023) stands at -4.7%, showing a persistent reduction in export value. Even though there was a slight increase in 2021 (+13.63%), it was followed by successive declines through 2023.
Looking forward, the forecasted data suggests further decline with the export value expected to decrease to $49.22 million by 2028. The projected CAGR for the next five years (2024-2028) is -6.67%, translating to a -29.19% overall decrease by the end of 2028.
Future trends to watch for include:
- Potential impacts of economic policies and trade agreements between Indonesia and Malaysia.
- Global market conditions affecting the textile industry, such as fluctuations in raw material prices and consumer demand.
- Technological advancements and their effect on production efficiency and costs in Indonesia’s textile sector.
- Environmental regulations and sustainability practices that could influence production methods and export capabilities.
