Indonesia : Bank Indonesia Agrees To Help Ailing Textile Industry

Bank Indonesia has agreed to cooperate to cope with the problem faced by the country's textile industry that needs funds for factory restructuring, Industry Minister Fahmi Idris said.

Fahmi said after a meeting with Bank Indonesia Governor Burhanuddin Abdullah on Wednesday that banks are reluctant to provide credits for textile industry as the government's macro economic policy is not favorable for textile industry. 

He said the influx of Chinese textile products in the world market also causes doubt among banks about the ability of the country's textile industry to survive.

He said the industry ministry and the central bank have formed a formulating team to help the textile industry.

State banks and Bank Central Asia, Bank Niaga and Bank Danamon are reported agreeing to help finance the restructuring.

President of state-owned Bank Negara Indonesia (BNI) Sigit Pramono said banks still see that doing business with the country's textile industry still carries great risks with labor, taxation, smuggling and infrastructure problems it is facing.

Yahoo.com