Textile industry accused of stifling High Risk
Economy February 8th, 2010
Indonesian Textile Association (API) deplored the attitude that domestic banks have also removed accusations textile and garment sector has a high risk or risky for credit disbursement. These conditions make the textile sector difficult to get loans from national banks.
Vice Chairman of the API Ade Sudradjat said, since 1998 and in the monetary crisis hit Indonesia, textile and garment sector began labeled as high-risk sector until now. So that makes many textile businesses to find alternative financing from foreign banks including Singapore in the form of export credit and others.
“So it better to seek funding from banks in foreign countries. Duit know it’s not nationalism. Yes we are looking for a solution to the problem of relying on here,” he said when contacted detikFinance, Tuesday (2/2/2010)
Actually Ade said, all types of manufacturing industry regardless of its form must have a risk, but national banks should address these issues more wisely. No matter what he said, the textile sector can absorb many workers whose numbers can drive the national economy.
“Now show me the same, which sectors are not at risk, all significant risks are minimized,” he said.
Although he admitted for the type of textile and garment industry is based on the domestic market, with the ASEAN-China Free Trade Agreement (ACFTA) will be under pressure. As for sector-based export sector it is still very strong relative to the pressure of free trade.
“For example, Indonesian textile exports in 2009 amounted to U.S. $ 9.8 billion, was down from the year 2008 amounted to U.S. $ 10.1 billion. Tapikan still generate foreign exchange, is not,” he said.
Based on the survey quoted banking from the site of Bank Indonesia (BI), over-fourth quarter of 2009, the manufacturing industry, especially textile and garment sub-sectors are still avoided for the distribution of banking credit.
Bank considers still weak demand from foreign textile and plan the implementation of the ASEAN-China Free Trade Agreement in 2010 will aggravate competition in the textile industry.
Banking is still avoiding the credit for building or property sector, especially the financing for the construction of malls and apartments, due to economic conditions that have not been recovered. Investment credit so that the long-term nature of this sector is considered risky.
