Strategi pengembangan dan peningkatan daya saing industri pakaian jadi indonesia

Indonesia’s apparel industry is one of national priority industry and labor-intensive industry which absorb 1.68 million employee, contributing 1.21% to the national GDP. The development of apparel industry seems not satisfied enough, with stagnant export value, rising of importation, declining of absorbed labor and poor utilization. The Government of Indonesia has made several policies to improve the apparel industry competitiveness, which are bonded zone facility, ease of importation for export oriented products, Restructuring the machinery/equipment for apparel industry in 2007-2015 and imposition of mandatory SNI for infant wear. All of those policies still couldn’t boost the competitiveness of apparel industry. Based on above mentioned situation, this research will lead to the development and improvement of competitiveness of Indonesia’s apparel industry. The Indonesia’s competitiveness position will seen from comparative advantage using revealed comparative advantage (RCA) methods and competitive advantage will using export product dynamic (EPD) methods in 20 (twenty) main export destination Countries. Performance analysis of the Indonesian apparel industry will conduct using structural conduct performance (SCP), whreas the explanantion of Indonesia’s flow of trade affecting factors will conduct using export demand function approach. In order to formulating the policy strategies of Indonesia’s development and improvement of competitiveness, researcher will be using analytic hierarchal process (AHP) approach. Indonesia’s apparel industry has a competitive advantage compared to other exporting Countries, which exporting its products to Belgium, Canada, China, France, Germany, Italy, Malaysia, Mexico, Netherland, Poland, Russian Federation, Spain, Sweden, United Arab Emirates, United Kingdom and United States of America. Meanwhile, Indonesia is rather uncompetitive when doing export to Australia, Japan, South Korea and Singapore. Indonesia’s apparel products has a competitive advantage in export destination such as China, Mexico and USA which could seen by the increase of export value and growth of market access to those Countries. The market structure of apparel products is a monopolistic competition market, which Indonesia’s apparel industry performance were influenced by the 4 (four) factors, consist of industrial efficiency, industrial growth, industrial productivity and import decline of apparel products. The factors that significantly affect the flow of trade are real GDP per capita of export destination Countries, Exchange rates of rupiah, the export price of apparel products, FTA and previous export. The most influential actors for the Indonesia’s development and improvement of the competitiveness in apparel industry are Governement and Businessmen, while the alternative strategy could do through promotion, cooperation and increase the quality of products