Banks to help textile producers

Banks to help textile producers

Zakki Hakim, The Jakarta Post, Jakarta

Bank Rakyat Indonesia and Bank Danamon have agreed with the
Ministry of Industry and Trade to provide help for troubled
sarong and batik producers in Pekalongan, Central Java, and in
Majalaya, West Java.

The agreement was reached during a meeting at the ministry on
Friday, said director general for domestic trade Rifana Erni.

She was unable as yet to provide details as the matter was to
be further discussed on Monday.

However, one short-term measure to aid the sarong and batik
producers would be to encourage state-owned companies to purchase
the products.

The banks could provide loans to finance such transactions.

Rifana said that state-sponsored investment financing company
Permodalan Nasional Madani had also agreed to help.

The sarong and batik producers have found themselves in
serious trouble in marketing their products after the Tanah Abang
market, the main domestic market and export channel for textile
products, was destroyed by fire last month.

Currently, there are some 14 million sarongs worth about Rp
175 billion (US$19.70 million) piled up in Majalaya and
Pekalongan.

Rifana earlier said that the ministry would also help the
sarong and batik producers open up new domestic markets in
Sumatra and South Sulawesi.