Fate of small industrialists<\/p>\n
From Media Indonesia<\/p>\n
The monetary crisis has severely hit all sectors of our life.
\nThe illogical exchange rate of the rupiah against the dollar has
\ncaused havoc in trade and industry. Employee layoffs cannot be
\nprevented. Even for the people who can hold their own, they are
\nin for difficult times. The situation is very much felt by small
\nindustries, which basically own very limited rupiah-base capital.<\/p>\n
One example is small industries in automotive and heavy-
\nequipment components (excepting machine components) which use
\niron plates as raw material. Both thin and thick plates are
\nproduced from local material.<\/p>\n
The raw material is not hard to obtain provided one can follow
\nthe rhythm of the exchange rate against the dollar and pay in
\ncash. Meanwhile, the business partners -- the recipients of the
\nproducts -- who are none other than the big businesses and
\nindustrialists, cannot follow the same rhythm because they are
\nbound by a fixed system of procedure.<\/p>\n
So, while the small industrialists pay cash for the raw
\nmaterial, their product is paid for after one month to three
\nmonths, sometimes longer and they can do nothing about it. Thus,
\nbasically, the small industrialists subsidize the big industries,
\nupstream as well as downstream producers. This describes the real
\nsituation in the ongoing pattern of partnerships.<\/p>\n
The system of partnerships needs revision in order that the
\nsmall industries are assisted by the big ones, not the opposite.
\nEspecially in this monetary crisis. I do not know what will
\nhappen if the government does not take concrete steps soon to
\ndefend the existence of the rupiah in our own country.<\/p>\n
M. SUNARTO HHW<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fate-of-small-industrialists-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }