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Indonesia textile industry outlook brightens after COVID blow

But tight funding, higher costs and supply chain challenges present risks

JAKARTA -- The outlook for Indonesia's textile and garment makers appears positive, after two years of pandemic-driven disruptions that decimated the industry. With growth in the sector having returned, it now faces a complex mix of factors.

Domestically, a reluctance to lend to the sector over lingering debt concerns has the potential to constrain growth, while rising costs in the form of high shipping and raw material prices are adding pressure, meaning the coast is far from clear.

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