Most batik producers in Pekalongan go bankrupt

JAKARTA (JP): At least 85 percent of 1,000 small-scale batik and garment producers in Central Java's Pekalongan regency, the main producer of batik, are on the verge of bankruptcy due to sharp increases in prices of raw materials.

The chairman of Pekalongan's textile producers association, Mahlul Akbar, said Saturday that most of the companies have halted their activities because they could no longer afford to buy the fabric.

He said the prices of fabric, the main raw material for the production of batik and other garments, were already too high, given the weak buying power of the people.

"Fabric prices have jumped by more than four times compared to the previous year's level. Although the situation is getting worse, we hope some of the companies can survive the crisis," Mahlul told Antara news agency in Pekalongan.

He suggested the surviving companies reduce their employees' working hours and production volume in a bid to last longer amid the economic crisis.

"Such approaches could prevent massive lay offs," he said.

Head of the regency's Ministry of Industry and Trade office, Edi Sugiarto, acknowledged that the economic crisis has forced most small-scale batik makers with weak capital to stop production.

Edi said that the price of several raw materials has exceeded the revenue made by batik makers.

He said the sharp increase in the price of fabrics was in line with the sharp increase of cotton, most of which was imported.

Several batik makers said they were pessimistic that they could survive much longer.

"We have no choice but to stop operations because of the high costs and the weak demand. Besides, the sluggish market has prompted an unhealthy competition among batik firms," said Ismail, a batik maker.

"If this continues to happen, Pekalongan batik will only be a memory in the next few years," he said.

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

"I hope that those batik makers will get some fresh funds to restart their businesses," Mahlul said. (gis)