80% of C. Java craft firms on the ropes

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)