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Home arrow Latest News arrow Condition of Majalaya Textile Small and Medium Industries


				
			
			
Condition of Majalaya Textile Small and Medium Industries PDF Print E-mail
Written by Maizer   
Friday, 24 May 2019

Small and Medium Industries (IKM) of Majalaya Bandung Regency are threatened with bankruptcy because they are unable to compete with imported products from China. Majalaya IKM Textile, Agus Ruslan said, in the last three years IKM Majalaya's textile turnover continued to decline.

 

This is because a lot of finished goods are imported from China with very cheap prices. In the past year,  continued to decline. Even Ramadhan there is no increase, said Agus

 

Three years ago, after Permendag number 64 of 2017 came out, many imported finished goods products from China entered Indonesia, including woven sarongs which were typical of Majalaya textiles. In beginning  sarong product from the bamboo curtain country was not very attractive to  market, so the Majalaya sarong could still survive.

 

However, now imported sarong products from China already dominate market because they have cheap prices, the impact to local products is lose the market.

 

He explained that prices thrown by Chinese imported products were cheaper compared to local products. IKM players in Majalaya can not do much, because with current production have  thin margin, so it is not possible to reduce prices in order to compete with imported textiles.

 

We buy raw materials using dollars, so the cost is high, while the margins are small, he said.

 

With such conditions, textile SMIs in Majalaya are threatened with bankruptcy. There are even some factories that have gone bankrupt.

 

The IKM Sarong in Majalaya used to reach around 350 factories. Now there are only 45 who survive, he said

 

He hopes that the government will revoke Permendag number 64 of 2017, because the regulation makes free public importers bring in products into the country without limits.

 

 

 
		
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