News dalla rete ITA

17 Maggio 2023

Indonesia

EXPAND BY OVERCOMING CHALLENGES

The labor-intensive textile, textile product, and footwear industries face various challenges, such as declining export demand, import rush, and labor costs. However, those who can innovate and expand are often successful. PT Pan Brothers Tbk, for example, has been expanding into Central Java since 2007 as a strategy to become an integrated, sustainable, and global clothing supplier company. Rizki Estrada, an Asia Floor Wage Alliance Officer, said that in the last three decades, the structure of employment in labor-intensive industrial sectors, especially garments in Asia, has become increasingly organized in global supply chains. Garment supply chains are driven and led by multinational companies, which generally promote a “fast mode” business model.Landscape suppliers are complex, multi-layered and competitive, involving contractors and subcontractors spread across sectors. Contractors and subcontractors face challenges such as labor costs, potential production disruptions and process automation, and pressure towards a sustainable business transition. In Indonesia, increasing the minimum wage has been a polemic. Ahmad Heri Firdaus, a researcher at the Center of Industry, Trade and Investment at the Institute for Development of Economics and Finance (Indef), explained that the characteristics of the downstream textile and footwear industry depend on brand holders. Investors need cheap land costs and affordable labor costs, and investors have determined the volume of production, model/design, tools used, and the type of raw material.Investors can partner with domestic and foreign suppliers, and the choice of raw materials depends on the most competitive supplier. Business actors from small to large micro scale are involved in the textile and footwear industry production chain, and it requires joint attention and commitment to boost the competitiveness of this labor-intensive sector.https://www.kompas.id/baca/ekonomi/2023/05/16/berekspansi-dengan-menyiasati-tantangan (ICE GIACARTA)


Fonte notizia: Kompas - 17 May 2023