Textile firms halt operation

Textile firms halt operation

PEKALONGAN, Central Java, (JP): At least five textile companies here have shut down operations indefinitely and more are likely to follow suit.

Chairman of the Pekalongan Textile Association Mahlul Akbar told The Jakarta Post on Monday that the closure of the five textile firms was the result of tougher competition among local textile firms.

The five firms are Asatex, Sugih Mitra Tenun, Jelita, Faristex and Panasitex.

Halted textile production at the five firms has thrown thousands of employees out of work.

Mahlul noted that most textile companies in the town are geared toward the export market.

However, since the government introduced a new policy on textile exports, most small and medium sized textile firms have not been able to export their products and have flooded the already competitive domestic market.

Mahlul said many of the non-performing textile firms have tried to make adjustments but have not received any banking support.

"The lives of small and medium-scale enterprises here are in danger," Mahlul said. (wah/rid)