Textile Industry

The textile industry is the industry's most severely affected by the global crisis. Based on the analysis of the Institute for Development Economics and Finance (INDEF) and the Central Bureau of Statistics, the global crisis could cause unemployment due to the weakening effect of the textile industry.

The cause of the textile industry shaken many export-oriented company, did not renew the contract workers and too early to do layoffs. The textile industry is still profitable, because Indonesia has accomplished businessman in the textile industry which has been for decades.

Businessman textiles advanced second generation is more educated so as to memanajerial better. Most of the textile industry has been using coal rather than solar energy and this reduces the burden of production companies.

The main priority is to improve the textile industry to accelerate the completion of infrastructure. Chinese competitors began to weaken as rising production costs in the country due to currency exchange rate policy in an open state and increased labor costs.

Minister of Industry, MS Hidayat, when opening the National Conference of the Indonesian Textile Association said the textile industry slowdown is due to the emergence of many competing countries, like Vietnam, Bangladesh, Thailand and China, which uses new technology.