Home / Knowledge / News / Textiles / Loans still costly for textile industry
Loans still costly for textile industry
06
Jul '10
As Indonesia's economy proved itself from the crisis of the world economic downturn, largely unharmed, domestic industries become worried about losing impetus as entry to finances remains expensive.

As per experts from the industry, the expensive funds in the country are due to government's heavy dependency on the rupiah bond market, to finance arrears in budget and also the central bank's failure to push banks to augment their lending.

More so, government's financial policy, although traditional in nature, had led to congestion in the bond market, which has restricted private firms from issuing their own bonds to garner funds. Due to this, private firms are facing difficulties, to obtain bank loans and garner funds from their bond offerings.

Executive Secretary of the Indonesian Textile Association (API), EG Ismy said that, owing to higher lending rates, almost 16 percent in a few banks, most of the Indonesia textile manufacturers had to bear currency risk, as they were pushed to borrow from international banks.

However, banks inform that, textile producers are a dying industry and lending them loan is absolutely baseless. More so, banks cannot pressurise the entire textile industry, owing to a few defaulters.

Bank Indonesia, in one of its recent survey revealed that, banks might still refrain from providing loans, as there were fewer demands for Indonesian textiles and the localised textile goods were facing a tough competition with foreign goods.

Ismy, however, stated that, textile industry will continue to sustain as portrayed by the exports value, despite facing stiff competition in the local market, due to inflow of Chinese goods.

As API, exports of textile in 2010 will tough US $10.6 billion, attaining new levels from about $9.3 billion in 2009, which again was lower by around 9.7 percent from the $10.3 billion recorded in 2008, during the economic crisis.

Fibre2Fashion News Desk - India

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search