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Lower labour costs attract garment units to central Java
May '13
The garments factories located in Western and Eastern Java of Indonesia have opted for relocation to central Java because of its cheaper labour costs.
Major reason cited for the relocation of garment factories to central Java is that the minimum wage is lower than in the urban areas of Jakarta, Bogor, Depok, Tangareng and Bekasi (Ja-bo-de-ta-bek) in Indonesia.
Garment entrepreneurs are also expecting more orders in view of the recent accidents that have occurred in Bangladesh garment units. They hope to increase their chances of bagging new orders by becoming more competitive through reducing labour cost.
Chairman of the Indonesian Textile Association (API), Ade Sudrajat, said the demand for high-skilled labour in the Indonesian textile and garment sector has increased to 60,000 workers, Suara Merdeka reported.
According to the API chairman, central Java will welcome more than 60 apparel manufacturing units from various regions of Indonesia and plans for accommodating these manufacturing units are in progress.
Mr. Sudrajat announced that an industrial park spread across 1,500 hectares of area is being planned out by an investor.
Currently, Indonesia is the twelfth largest global textile and garment exporter, with around 38 percent of its exports destined to the US.

Fibre2fashion News Desk - India

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