The Ministry of industry recently allocated 110 billion rupees to the machinery upgrading of 122 textile enterprises in the country, accounting for about 75.8% of the total budget limit of 145 billion rupees.

A total of 142 textile and footwear enterprises signed the aid agreement, but 20 enterprises failed to receive assistance because they could not provide evidence for new machinery procurement.

Indonesia's Ministry of industry said

The plan is effective in maintaining the use of underground water in the production of Indonesia's textile industry.

However, under the global economic downturn and declining demand, the plan does not guarantee that Indonesia's textile exports will increase this year.

Moreover, in 2013, the allocation of the updated funds will probably be reduced to 135 billion rupees.

Data show that since 2009, Indonesian textiles and

Exports increased by an average of 10% per year, but this year, Indonesia's exports could decline by 5%~6% due to a 11% drop in global demand.

At present, Indonesia's share in the world textile market is about 2%~3%, far below China's 42%.

Indonesia's Ministry of industry believes that Indonesia's share will expand in the future because China's textile market share is shrinking.