Threat of Textile Industry Restructuring Being Canceled
Wednesday, 31 January, 2007 | 15:46 WIB

TEMPO Interactive, Jakarta: The program for restructuring the textile machinery and products industry is threatened of being canceled if it is not carried out this year.

The program is regarded as not yet having legal standing.

Ernovian G. Ismy, Executive Secretary of the Indonesian Textile Association, said that the textile machine industry restructuring program had to be started this year.

“Next year, the political condition will not be conducive as we will be approaching the general election,” he said yesterday (30/1).

According to him, textile machinery and products industry is one of ten prioritized programs that were stated by President Susilo Bambang Yudhoyono as being aimed at pushing economic growth.

The textile machine restructuring program has been approved by the House of Representatives and the business world.

In the 2007 State Budget, Rp285 billion in funding has been allocated for the program.

Ernovian explained, that India—one of Indonesia’s competitors—has been performing textile industry restructuring since four years ago.

If the program is realized, then it will create many new jobs, absorbing lots of workers.

Ansari Bukhari, Director General of Metal, Machine, Textile and Multifarious Industries at the Industry Department, said the Finance Deparment’s State Treasury Directorate General was still looking into the legal standing of the textile industry restructuring program.

According to him, this program will go on.

The Finance Department considers that the textile machine restructuring is a new program and therefore the legal standing must be found.

In the program, the government gives direct subsidies to private businesspeople.

“So far there hasn’t been any department which has realized the program,” he said.

Ansari explained, as many as 30 companies have proposed to join the program to be carried out by the government.

At the moment, 70 percent of the textile industry uses machines that are more than 20 years old.

The Industry Department, he said, was still optimistic that the program can be implemented.

According to Ansari, a verification agency has been set up which will evaluate the textile companies’ proposal.

Muhamad Fasabeni