Textile investors flee Bandung

BANDUNG: At least five foreign textile investors have closed down their businesses here this year due to chaotic implementation of regional autonomy, the secretary of the Indonesian Textile Association (API) in West Java Ade Sudradjat claimed.

"Those investors from Korea and Taiwan pulled out their capital due to the fact that the conditions were no longer conducive," Ade said on Monday.

Constant mass protests by locals and workers along with excessive levies and taxes imposed by the local government under regional autonomy have contributed to the investors' withdrawal, he added.

There are some 80 textile factories in the Bandung area and the last factory closure took place in Rancaekek two weeks ago.

"In many cases, residents living near the factory have blindly demanded that only locals be permitted to work in the factory and they drove all migrant workers away. This is crazy," he charged.

People must realize that running a business is not charity work, he said.

"The factory cannot just hire locals. There must be certain standards and qualifications. The local administration also has to encourage more investors instead of pushing them away by imposing too many taxes," Ade added. (25/edt)