Apparel Sourcing Intelligence - Worldwide

400 factories close in West Java

At least 400 medium and large textile and garment makers in Indonesia’s West Java have stopped operation over the past year, the newspaper Bisnis Indonesia reported, with a local parliamentarian claiming the main cause was “failure of the government to provide support to companies”.

However, it was the taxation system, labour problems, and inadequate infrastructure that have continued to be at the centre of the problems faced by the industry, Deputy chairman of the Commission I of the House of Representatives Lili Asdjudiredja said. Lili said the government has never seriously sorted out theproblems faced by the industry – especially red tape, including red tape in licensing procedure. He said an investor needs to have 75 licences to establish a textile or garment company and many licenses are even required in to change fuel supply from oil to coal.