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.