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)