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Home arrow Latest News arrow Convection Hit by Tanah Abang Market Closed

Convection Hit by Tanah Abang Market Closed PDF Print E-mail
Written by Maizer   
Tuesday, 28 April 2020

The days of Ramadan are usually the busiest times for the convection business managed by Muhammad Irsyad, 32, in Tanah Abang Market, Central Jakarta.


The women's underwear convection business has been in the family for 27 years, but this is the first time shop in Tanah Abang has been closed for more than a month.


"Usually before the fasting month the peak of the peak is for all traders in Tanah Abang. Now there is no movement at all, "said Ershad to Anadolu Agency,


Under normal circumstances, Ershad's shop can make a turnover of up to 150 million per month by producing 200 dozen clothes per week.


While at this time, Ershad claimed not to have any income at all because the store and the convection had to stop operating.


He was forced to lay off around 50 employees because he was unable to continue production and pay their wages.


Ershad's employees are usually paid a daily wage depending on their productivity.


When production stops, their income also stops automatically so that most choose to return home to survive.


"If forced production continues, while there is no market, I am not strong. "Even if you try it you don't dare, you might go bankrupt," he said.


On the other hand, Ershad felt he was still burdened by ongoing bills, one of which was debt repayments to banks.


"I have communicated with the bank, asking for help with the installment relief, but there is no such thing," said Ershad.


Ershad is currently trying to survive by selling the rest of the existing production to small markets that are still operating.


But according to him, not much was sold considering that people's purchasing power declined amid a pandemic.


"Everything is quiet, not enough to cover up," he said.


"I just hope that the Covid-19 (pandemic) can be finished soon, so that it can move again slowly," continued Ershad.


Textile production has dropped 80 percent, 1.8 million workers have been affected


Executive Secretary of the BPN Indonesian Textile Association (API) Rizal Tanzil Rakhman said textile production had dropped by 80 percent compared to normal situations.


Textile producers cannot market their products domestically because of wholesale centers such as the Tanah Abang Market, Jakarta; Pasar Baru, Bandung; and Cigondewah Market, Bandung; must be closed due to large-scale social restrictions (PSBB) policies.


"The national center is in Tanah Abang so it has a big influence. If it closes, the national market has no channels, "Rizal told Anadolu Agency.


Public buying interest in textile products also declined so that online marketing was not helpful.


In addition, the export market was also affected by the pandemic due to a number of destination countries implementing lockdowns.


"For those who export there are around 90 percent who cancel orders," said Rizal.


"This is the most difficult condition ever experienced by textiles, more severe than the 1998 crisis," he continued.


API data show that there are 1.8 million textile industry workers who have been laid off until April 2020, most located in West Java and Central Java.


According to Rizal, employee reductions and production cuts are predicted to still occur if the pandemic continues.


"The 20 percent that are still in production are currently only spending orders for garments, some are shifting production to PPE (personal protective equipment) and masks," Rizal said.


But shifting production to PPE for medical needs is also not the answer for the whole industry that was hit.


Rizal said only about 3 percent of the industry could switch, while the rest did not have the capacity for it.


"To be able to produce PPE, only the garment sector can, which also has not much equipment to produce PPE," he continued.


According to him, the losses that must be borne due to this pandemic have been very large.


The textile industry is one of the significant foreign exchange earners of national exports reaching USD19 billion in January to October 2019.


On the other hand, the minimum electricity bills and debt installments to banks are still ongoing.


"Electricity is used or not, it still pays about 10 percent of the monthly bill," Rizal said.


API asks for a reduction in electricity payments so that they can be repaid after the pandemic is over, and there is debt relaxation from banks.


"If the government does not give the right treatment, our prediction is the best until the end of this month can survive," said Rizal.


"The economic impact is very heavy, at least with stimulus we can save our breath," he continued.



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