Textile manufacturers are seeking help from the Government to revive the sluggish industry, appealing to issue new schemes that will assist banks to provide loans to small and medium enterprises.
At the Association of Textile Producers meet, delegates explained that banks were hesitant to provide loans to textile companies as the business was dull.
Association also informed that 60 percent of the machinery used is nearly 10-20 years old, about 35 percent is more than 20 years old and only five percent has been operated for less than 10 years.
Analysts estimate that at least US $3.5 billion fresh funds are required to rejuvenate the country's textile industry, which is of working capital and new machinery.
Government has guaranteed a fund of around Rp200 billion ($21.6 million) by 2007.
Industry has stressed that if the use of old machinery continues, the export target of $9 billion may not be achieved.
Textile exports climbed to $4.5 billion in the first half of this year.
marketing@alchempro.com
