The slowdown in the Indonesian economy has led to a decline in the people’s purchasing power causing lower demand for textile products in domestic market. Most of these small companies, with 360 employees approximately, have high inventory of goods unsold and hence cannot produce more due to lack of demand. Demands for slashing of electricity tariffs by 40 per cent and establishment of trade barriers for some textile imports have been put up to help the local manufacturers compete in the market. The falling demand has made more than 100 textile and garment makers to think on the lines of shutting down, putting 36,000 jobs at risk.
