Parties flood firms with T-shirt orders

Abdul Khalik, The Jakarta Post, Jakarta

Election campaigns are bringing a flood of orders to factories to produce low-cost T-shirts as political parties rush to provide uniforms for their supporters. However, many of these orders could end up in the hands of overseas factories, not Indonesian firms.

The head of the Indonesian Textile Association (API) for the Jakarta area, Benny Benyamin, said there had been a marked increase in orders for T-shirts and fabric around the campaign period but only some producers had experienced significantly higher orders.

"Not all of our members are enjoying the impact of the election. Only those which produce low-end (cheap) fabric have got a lot more orders," Benny told The Jakarta Post on Monday.

Benny said the increase in orders would only last a few months and would not help revive the industry because only some factories could benefit from the event.

He said small-scale enterprises, which are not API members, may be benefiting more than the large companies.

According to data from the Ministry of Trade and Industry, by last year there were 2,654 textile companies nationwide, with 80 percent of the big companies located in Jakarta and West Java. They employ more than 1.18 million people.

These companies, most of which target the international market, have been facing tough competition from Chinese and Vietnam firms both locally and internationally.

Many had hoped that election demand on the fabric and t-shirt market would give the industry a boost.

A member of API, Hendi said only some factories were ready for demand for low cost T-shirts.

"Most big factories can't adjust their production specifications for a the short-term because they have already specialized in higher-quality products for export," he said.

Hendi said cottage industries, which printed parties' symbols on T-shirts and made their flags, were benefitting most from the campaigns.

"These small-scale businesses at Mampang and Pancoran in South Jakarta, or at Pulogadung in East Jakarta, handle most of the orders," he said.

These businesses did not buy fabrics directly from factories but from the Tanah Abang market, the Cipulir market or the Jatinegara market.

However, the traders in these markets would eventually buy fabrics from big factories, causing an increase in demand for low quality fabrics, he said.

There were thousands of small factories around the Jabotabek area that could absorb the T-shirt demands during the election campaign.

"Because most of them are in the "informal" sector and use simple equipment, they can adjust their capacities without much difficulty, by buying more materials and equipment or hiring more people depending on their orders," Hendi said.