Parties flood firms with T-shirt orders

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.