70% Indonesian clothing factories may face
Reuters published a news where it was expected that
Indonesian textile makers to get windfall from coronavirus
outbreak. The Indonesian textile-to-garment company had
initially forecast a 15% rise in sales this year.
But now the scenario is totally smashing. Indonesian
Filament and Fiber Producers Association (APSyFI) recently
said that 80 percent of textile companies have intermitted
operations while facing cash flow issues.
According to APSyFI around 70 percent textile and garments
may close permanently due to the COVID-19 impact.
Financial support from the government is urgently required
as around 1.8 million textile and garments industry workers
are already laid off because of the pandemic, General
Secretary of APSyFI Redma Gita Warawasta said in a
The entrepreneurs are not getting enough policy support from
the government. The association also complained about the
financial sector not providing credit relaxations to textile
companies, even though the Financial Services Authority (OJK)
has issued a regulation on credit restructuring for
companies impacted by the pandemic.