On March 2, 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 statement.
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.