Textile News, Apparel News, RMG News, Fashion Trends
News & Analysis Textile People

70% Indonesian clothing factories may face permanent closure

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.

Figure: 70% of Indonesian TPT firms may permanently close, says APSyFI.

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.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

Related posts

Jakarta Fashion Hub set to unlock potential of fashion and textile in Indonesia

Textile Today

Campaigners call on Uniqlo to resolve wage theft case for International Women’s Day

Textile Today

Latest Publications

View All