Batik cooperatives body to expand textile capacities<\/p>\n
JAKARTA (JP): The Indonesian Batik Cooperatives Association
\nwill expand the production capacities of its companies by
\nincreasing the number of its spinning units from 210,000 to
\n270,000, with an investment of Rp 60 billion (US$26.8 million).<\/p>\n
Antara reported on Saturday that the association's chairman,
\nNoorbasha Djunaid, said the new spinning units would be installed
\nat two of its seven textile companies -- PT Medarindoteks in
\nYogyakarta and PT Primatexco in Pekalongan, Central Java -- as
\nwell as its joint venture company, PT Daiwa Textile Indonesia,
\nwhich the association has established together with Daiwabo and
\nNichimen of Japan.<\/p>\n
He said that all the products from the joint venture would be
\nexported to Japan.<\/p>\n
Noorbasha said his association would provide 20 percent of the
\ntotal investment, while its Japanese partners would provide the
\nrest.<\/p>\n
The association, which a few months ago managed the debt-
\nridden Kanindotex Group of textile companies, recorded total
\nsales of Rp 265.7 billion last year, up by 42.4 percent from Rp
\n186.6 billion in 1993. This year, the company projects to reach
\ntotal sales of Rp 338.9 billion.<\/p>\n
Prior to the association's plans to expand its production
\ncapacity, the Kanindotex Group, which was taken over by a
\nconsortium led by Bambang Trihatmodjo, announced that the group
\nintended to expand its capacity by adding 150,000 spinning units
\nto its current total of 420,000 units, with an investment of Rp
\n172 billion.<\/p>\n
According to the Indonesian Textile Association, textile
\ncompanies in Indonesia operated a total of 7.2 million spinning
\nunits last year, as compared to merely 5.8 million in 1992.<\/p>\n
During the first six months of this year, the Investment
\nCoordinating Board approved 21 textile projects with total
\ndomestic investments of Rp 3.3 trillion and 29 foreign textile
\nprojects worth $333 million.<\/p>\n
As of June, the board has, since 1967, approved 1,254 domestic
\ninvestment textile projects valued at Rp 31.5 trillion, as well
\nas 446 foreign textile projects worth $5.7 billion.<\/p>\n
Textile has been the main contributor to the country's foreign
\nexchange coffers, accounting for about 15 percent of the
\ncountry's total exports. However, last year, Indonesia's exports
\nof textiles and textile-related products dropped by 6.2 percent
\nto $5.79 billion, from $6.2 billion in 1993. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/batik-cooperatives-body-to-expand-textile-capacities-1447893297",
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"sponsor": "Okusi Associates",
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