Mon, 06 Jul 2015
Having struggled with weak sales over the past several months, sarong makers in Majalaya district, Bandung regency, West Java, are selling their products below normal price during the Islamic fasting month of Ramadhan to keep up with production costs and avoid total shutdown.

Located 40 kilometers southeast of the province’s capital city in Bandung municipality, Majalaya is known as one of Indonesia’s biggest producers of sarongs, a loose garment made of a long strip of cloth that is widely used by Muslim men and women around the country to perform prayers.

Unlike previous years, many sarong makers in Majalaya have been offering their products at relatively low prices during this year’s Ramadhan, which began on June 18 and is expected to last until July 16, to respond to sluggish demand.

Dayat, a 60-year-old sarong trader from Bandung, for example, said he had recently managed to buy 3,000 sarongs from an ailing sarong factory in Majalaya for a low price.

“I only paid Rp 300,000 [US$22.40] for every 20 sarongs, much lower compared to the normal price that stands at around Rp 350,000,” the retired civil servant told The Jakarta Post recently.

Deden Sawega, the owner of sarong-making company CV Sandang Makmur Lestari, said all sarong makers in Majalaya had been struggling with low demand from the local market since earlier this year.

Many sarong makers, Deden said, used to expect that business would bounce back during Ramadhan, the time when Muslims across the country usually buy new sarongs or other Muslim attire, like koko shirts (long-sleeve collarless shirts) for men and head scarves for women, for gifts or personal use.

Their expectations, however, did not become reality this year, even after the second week of Ramadhan, forcing them to sell their stock below normal price in the hope of partly covering production costs.

“Until three months ago, all factories in Majalaya had stockpiled up to 600,000 sarongs. As of recently, there are between 200,000 to 300,000 sarongs remaining in our stock. This situation is alarming as we usually have no stock left in the weeks prior to Ramadhan,” Deden said, adding that hundreds of sarong factories in Majalaya could produce around 1 million sarongs annually.

In response to the sluggish demand, Dede said he preferred to cut down his production capacity.

“By the end of last year, I managed to employ 40 people and run 42 [sarong manufacturing] machines, but now I’m only able to employ 18 people and operate 24 machines,” Deden said, adding that several other companies had even stopped production as they were no longer able to pay their electricity bills.

Sales in textiles slumped by more than 40 percent in the January-April period from the past year, according to a recent report from the Indonesian Textile Association (API).

Last month, API chairman Ade Sudrajat also reported that at least 6,000 textile factory workers had been dismissed in Bandung regency between January and May due to weak sales and rising production costs. Some factories, according to him, had also trimmed working time from seven days to just three days as a result of the sluggish demand.

Data from the association shows that West Java is the largest contributor to national textile production with 49 percent, while Jakarta and Banten contribute 16 percent, Central and East Java represent 14 percent each and the remaining 3 percent comes from other regions.

Separately, West Java Industry and Trade Agency head Ferry Sofwan Arif said the local administration had learned about the sluggish sarong demand in Majalaya. As a short-term support, Ferry said the local administration had urged civil servants to buy Majalaya-made sarongs during Ramadhan.





News Search/Filter
Transaction Rates
21 Jul 18
Buy
Sell
AED1
3,897.52
3,897.52
AFN1
199.64
199.64
ALL1
133.47
133.47
AMD1
29.81
29.81
ANG1
7,753.99
7,753.99
AOA1
55.94
55.94
ARS1
519.14
519.14
AUD1
10,612.33
10,612.33
AWG1
8,002.03
8,002.03
AZN1
8,408.62
8,408.62
BAM1
8,534.40
8,534.40
BBD1
7,157.84
7,157.84
BDT1
169.53
169.53
BGN1
8,579.86
8,579.86
BHD1
37,877.18
37,877.18
BIF1
8.01
8.01
BMD1
14,315.68
14,315.68
BND1
9,474.38
9,474.38
BOB1
2,073.25
2,073.25
BRL1
3,800.03
3,800.03
BSD1
14,315.68
14,315.68
BTC1
105,167,864
105,167,864
BTN1
207.90
207.90
BWP1
1,387.91
1,387.91
BYN1
7,170.55
7,170.55
BZD1
7,117.75
7,117.75
CAD1
10,885.64
10,885.64
CDF1
8.85
8.85
CHF1
14,420.01
14,420.01
CLF1
595,246.63
595,246.63
CLP1
21.66
21.66
CNH1
2,111.28
2,111.28
CNY1
2,114.38
2,114.38
COP1
5.00
5.00
CRC1
25.22
25.22
CUC1
14,315.68
14,315.68
CUP1
561.39
561.39
CVE1
151.56
151.56
CZK1
648.68
648.68
DJF1
80.41
80.41
DKK1
2,251.94
2,251.94
DOP1
288.21
288.21
DZD1
121.57
121.57
EGP1
800.42
800.42
ERN1
945.59
945.59
ETB1
517.55
517.55
EUR1
16,794.45
16,794.45
FJD1
6,787.88
6,787.88
FKP1
18,800.77
18,800.77
GBP1
18,800.77
18,800.77
GEL1
5,851.63
5,851.63
GGP1
18,800.77
18,800.77
GHS1
2,985.54
2,985.54
GIP1
18,800.77
18,800.77
GMD1
297.93
297.93
GNF1
1.57
1.57
GTQ1
1,909.41
1,909.41
GYD1
68.38
68.38
HKD1
1,823.68
1,823.68
HNL1
595.74
595.74
HRK1
2,267.24
2,267.24
HTG1
213.21
213.21
HUF1
51.55
51.55
IDR1
1.00
1.00
ILS1
3,945.46
3,945.46
IMP1
18,800.77
18,800.77
INR1
208.24
208.24
IQD1
12.01
12.01
IRR1
0.32
0.32
ISK1
134.69
134.69
JEP1
18,800.77
18,800.77
JMD1
109.54
109.54
JOD1
20,159.83
20,159.83
JPY1
128.48
128.48
KES1
142.16
142.16
KGS1
209.76
209.76
KHR1
3.52
3.52
KMF1
34.07
34.07
KPW1
15.90
15.90
KRW1
12.70
12.70
KWD1
47,277.68
47,277.68
KYD1
17,167.72
17,167.72
KZT1
41.33
41.33
LAK1
1.69
1.69
LBP1
9.47
9.47
LKR1
89.50
89.50
LRD1
93.41
93.41
LSL1
1,060.61
1,060.61
LYD1
10,373.68
10,373.68
MAD1
1,515.94
1,515.94
MDL1
857.71
857.71
MGA1
4.30
4.30
MKD1
272.16
272.16
MMK1
10.00
10.00
MNT1
5.86
5.86
MOP1
1,772.05
1,772.05
MRO1
40.21
40.21
MRU1
399.32
399.32
MUR1
416.27
416.27
MVR1
929.58
929.58
MWK1
19.70
19.70
MXN1
752.52
752.52
MYR1
3,523.87
3,523.87
MZN1
242.04
242.04
NAD1
1,068.73
1,068.73
NGN1
39.71
39.71
NIO1
451.74
451.74
NOK1
1,750.69
1,750.69
NPR1
129.94
129.94
NZD1
9,741.54
9,741.54
OMR1
37,191.12
37,191.12
PAB1
14,315.68
14,315.68
PEN1
4,374.37
4,374.37
PGK1
4,344.33
4,344.33
PHP1
268.74
268.74
PKR1
111.40
111.40
PLN1
3,885.13
3,885.13
PYG1
2.49
2.49
QAR1
3,931.69
3,931.69
RON1
3,605.76
3,605.76
RSD1
142.26
142.26
RUB1
225.54
225.54
RWF1
16.62
16.62
SAR1
3,816.80
3,816.80
SBD1
1,815.32
1,815.32
SCR1
1,057.28
1,057.28
SDG1
794.21
794.21
SEK1
1,617.18
1,617.18
SGD1
10,505.75
10,505.75
SHP1
18,800.77
18,800.77
SLL1
2.19
2.19
SOS1
24.68
24.68
SRD1
1,919.50
1,919.50
SSP1
109.89
109.89
STD1
0.68
0.68
STN1
675.26
675.26
SVC1
1,634.87
1,634.87
SYP1
27.79
27.79
SZL1
1,067.93
1,067.93
THB1
429.61
429.61
TJS1
1,521.56
1,521.56
TMT1
4,078.56
4,078.56
TND1
5,430.80
5,430.80
TOP1
6,154.79
6,154.79
TRY1
2,988.10
2,988.10
TTD1
2,125.58
2,125.58
TWD1
468.07
468.07
TZS1
6.28
6.28
UAH1
544.19
544.19
UGX1
3.82
3.82
USD1
14,315.68
14,315.68
UYU1
458.34
458.34
UZS1
1.83
1.83
VEF1
0.13
0.13
VND1
0.62
0.62
VUV1
131.22
131.22
WST1
5,521.10
5,521.10
XAF1
25.60
25.60
XAG1
222,091.17
222,091.17
XAU1
17,634,710.43
17,634,710.43
XCD1
5,297.10
5,297.10
XDR1
20,045.25
20,045.25
XOF1
25.60
25.60
XPD1
13,128,955.31
13,128,955.31
XPF1
140.73
140.73
XPT1
11,860,548.12
11,860,548.12
YER1
57.19
57.19
ZAR1
1,066.32
1,066.32
ZMW1
1,454.40
1,454.40
ZWL1
44.40
44.40
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services