80% of C. Java craft firms on the ropes

SEMARANG, Central Java: More than 80 percent of 3,000 small handicraft companies, including batik firms in the province, are on the verge of bankruptcy as they are no longer able to survive the economic crisis.

The chairman of the province's handicraft makers association, Eryanah, said companies in the batik, furniture and woodcarving sectors were the most severely affected due to shortages of raw materials and weak market demand.

"The prices of raw materials are skyrocketing by up to four times their previous price," said Ernayah.

Ernayah said only the government had the capability to step in and help the companies by providing special loans.

"I hope that they will get some fresh money to restart their businesses," Ernayah said. (har)