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Illegal trade leads 70,000 textile employees jobless

01 Jun '06
2 min read

The widespread smuggling of secondhand garments had been slowly deteriorating the domestic market, since early 2000.

The Indonesian Textile Association has reported that 70 companies had stopped functioning, as a result approximately 70,000 textile and garment employees are jobless, at the end of previous year out of 1.2 million workers in the industry.

The sector as against the growth of 4.3 percent in 2004 only grew by 1.5 percent in 2005, due to overlapping problems.

Unaware, the popularity of secondhand clothes would affect adversely, the lives of Indonesian garment workers; people buy shirts and skirts sold cheaply at Rp5,000 each because they cannot afford mall prices.

Further on browsing through the stacks of clothes, unique items unmatched even by expensive 'branded' boutique can be found which fetch high prices when resold.

More than 250,000 bales enter the country mostly through North Sumatra, consisting of second hand shirts, skirts, jackets, trousers, suits and underwear originating from Malaysia, Singapore, Korea and Japan.

There exists a Secondhand Garment Association, at national level for illegal distribution chain that claims to represent some 1,500 vendors nationwide.

This nasty circle of illegal trade is created due to large demand and with the support of unlawful levies made to government officials.

Business will continue till the customers arrive irrespective of its unpleasant affects.

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