Posted September 04, 2019 05:11:34 Textile factories in Indonesia have warned of a “catastrophe” for their businesses as the world economy continues to slide into recession.
Textile factories have warned they will need to cut production and slash prices to stay competitive with rivals in Asia, including China.
Indonesia’s biggest apparel and textile manufacturer, Puma, said the country has a shortage of fabrics, and it is “urgently looking at all options” for growth.
“It’s not a good time for us, we’ve got a lot of challenges in the economy right now and we need to make sure that we don’t get caught in a vicious cycle,” Puma President, Hatta, Pia Kudunen told Reuters.
“If we can’t find a way to keep pace with the world, then we can only lose,” she added.
Puma, which is based in the city of Bukit Timah, employs about 200 people.
The country’s textile industry relies heavily on cheap imports from China, and a fall in Chinese demand would lead to an economic slowdown for other parts of the country, like the oil-rich East Timor.
While Puma has said it will continue producing cotton and silk, the firm said it was now looking to expand to other fabrics.
“We are now looking at fabrics, including bamboo, and we are also looking at textiles and the textile industry is also looking into that,” Hatta said.
“But we are focused on the textile and our focus is on our customers.”
Hatta said that although China’s trade deficit with the United States had fallen from a high of $US1.3 billion in 2014 to about $US200 million in 2018, she was not optimistic about the country’s future.
“I think it will go down in the near future.
I’m not too worried about that.
I think there’s still a lot to do,” she said.
Topics:business-economics-and-finance,industry,economic-trends,industries,industrials-and‑finance—industries-and.subsidies,foreign-affairs,india,japanFirst posted September 03, 2019 16:57:46