JAKARTA, iNews.id – Textile industry Indonesia is in shock, the newest company Sritex officially declared bankrupt. Observer Assessing the bankruptcy of the Sritex textile company in Indonesia is an alarm for the sustainability of the domestic industry in the future.

For this reason, Institute for Development of Economics and Finance (Indef) economist Eisha M Rachbini believes that the government must help save this labor-intensive industry.

He assessed that the Indonesian textile industry is experiencing good pressure from demand. Pressure on weak purchasing power, whether in the domestic or global market, causes textile companies to go out of business.

“We know that in the past few years there has been a trade war between China and America, and as the market has become more open, many Chinese textile products have flooded the domestic market,” said Eisha when talking to iNews.id, Saturday (26/10/2024).

This decline in people's purchasing power has shifted consumption patterns to look for cheaper goods, one of which is imported goods. This cannot be charged because production costs for the textile industry in Indonesia are still much more expensive than China, Vietnam and Bangladesh.

To deal with this situation, there are several policies that are important for the government to consider to save the textile industry in the future, to increase the industry's competitiveness.



Source link