Taiwan banks ready to help ailing textile makers<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Industry and Trade said it would facilitate a
\nmeeting between West Java textile producers and several Taiwanese
\nbanks to help the producers seek financing to replace outdated
\nmachinery.<\/p>\n
"In the first stage, we will facilitate a meeting between
\nChina Trust Bank and the Export Import Bank of Taiwan and the
\ntextile producers in Bandung, West Java, on April 10," Luky
\nHartini, director of textile and textile products at the
\nministry, said.<\/p>\n
She said Taiwan creditors had expressed their readiness to
\nprovide long-term credits to the textile producers to finance the
\npurchase of new machinery from Taiwan.<\/p>\n
"But I don't know yet the size of the loans or the interest
\nrates because they (the bankers) want to meet directly with the
\ntextile producers," Luky was quoted by Antara as saying.<\/p>\n
She also said a separate meeting would be arranged between
\ntextile makers in Jakarta and the Taiwanese banks.<\/p>\n
The country's troubled textile industry has been losing
\noverseas markets to textile producers from countries like China
\nand Vietnam, in part because of the inefficient aging machinery
\nused by Indonesia's textile makers.<\/p>\n
Textile exports have declined significantly in recent years.
\nIndonesia booked a record textile export value of US$8.2 billion
\nin 2000, but that figure slipped to $7.6 billion in 2001.<\/p>\n
Exports this year are projected to decline again to about $7
\nbillion.<\/p>\n
In the home market, Indonesia's textile producers also are
\nbeginning to be sidelined by competitors from China.<\/p>\n
The Indonesian Textile Association has repeatedly urged the
\ngovernment to help replace old machinery to save the industry
\nfrom ruin.<\/p>\n
The association said some 60 percent of current textile
\nmachinery had been in use for more than 15 years.<\/p>\n
Local banks, which are just beginning to recover from the
\ndevastating financial crisis of the late 1990s, are unable or
\nunwilling to offer the loans necessary to upgrade the machinery.
\nMany banks still find themselves in weak capital positions, while
\nthe real sector is still associated with high risk.<\/p>\n
The textile industry is an important sector for the country's
\neconomy because it provides a significant number of jobs and
\ngenerates export revenue.<\/p>\n
The Ministry of Industry and Trade earlier said the country's
\ntextile industry needed some $6 billion to repair aging machinery
\nto boost production.<\/p>\n
The ministry has also taken several steps to help the textile
\nindustry.<\/p>\n
A revitalization program was recently introduced with the aim
\nof boosting exports and creating more jobs.<\/p>\n
To find financing for the program, the government set up the
\nIndonesian Recovery Fund (IRF).<\/p>\n
The IRF, however, has failed to convince overseas and domestic
\nfinancial institutions to provide the funds needed for the
\nprogram.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/taiwan-banks-ready-to-help-ailing-textile-makers-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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