On November 8, 2007 a textile business forum was organized by the Ministry of Industry, Indonesian Textile Association and the Indonesian Synthetic Fiber Makers Association. In light of considerations to extend the subsidy program to modernize the Indonesian textile industry, the purpose of this forum was to inform about the current status and outlook of the Indonesian textile and clothing industry as well as to provide information of successsful textile-manufacturing nations. About 70 representatives from Ministry, Association and industry were attending this symposium.
Given the decade-long restraint of Indonesian banks to give loans to the local textile industry, small investments in recent years have worsened the technology level and lowered productivity. Nearly 60% of the installed textile and garment machines are older than 15 years. It still remains as one of the key issues that might discourage investments in the textile industry. Further on, the end consumer market is flooded by smuggling of second-hand clothes and a surge in illegal imports that are deteriorating the domestic market.