Textile companies in Indonesia need to be revamped as aging textile machineries have marred the quality of production and thereby, exports.

The Ministry of Industry will negotiate with the central bank to provide loans to save the industry, a minister said.

BI (Bank Indonesia) can help local banks, said Fahmi Idris, Minister of Industry, after a meeting with business associations.

The minister also added that loans would be prioritized for 69 textile companies in West Java that are on the verge of destruction.

Companies would require US $5 billion investment to renovate whole production facilities and $3.6 billion to replace 15-year old machineries, estimated Benny Soetrisno, Chairman, Indonesian Textile Association (API).

APA also lamented the closedown of operation in 77 companies, leaving about 70,000 textile and garment employees jobless.

Fibre2fashion.com