Garment Firms Axe Plants, Move To China

Up to a dozen export-oriented textile and garment makers have axed their factories in Indonesia with many relocating to China instead, a senior textiles chief said on Wednesday.

The clothing and fibre firms include those involved in printing, drying, and weaving, the chairman of Indonesian textiles association (API), Lili Asdjudiredja, said.

"Factory shutdown has been happening since last year in consequence to competition both in domestic and export that are recently overwhelmed by illegal import products," he told Bisnis Indonesia.

He cited lucrative incentives being offered to Indonesian-based manufacturers for the closures and called on the Indonesian authorities to address the situation immediately