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The Ministry of Industry of Indonesia has set an index to restructure 600 companies by investing 1.50 trillion dong (approximately US$170 million) each year between 2011 and 2014.
Another problem is the low competitiveness of the human resources in the textile industry, the unsatisfactory local infrastructure facilities, and the Indonesian National Standard (SNI) that protects Indonesian domestic industries against foreign imports.
Ade, chairman of the Indonesian Textile Industry Association (API). Sudrachart told reporters in Bandung that the current shortage of cotton supplies and unstable prices have affected the smooth development of the Indonesian textile industry.
Ader said that Indonesia's textile industrial cotton, in addition to imports from China and India, also imports from the United States, Brazil and Australia.
It is understood that Indonesia's textile industry has the problems of backwardness in textile machinery, serious aging, low efficiency, and weak competitiveness, which directly affects the textile and garment industry in Indonesia.