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Jakarta Post

China-made batik saturates local market

BATIK HEAVEN: A sales clerk arranges batik clothes at a stall at the Batik Exhibition at the Industry Ministry in Jakarta on Monday

Mustaqim Adamrah (The Jakarta Post)
Jakarta
Tue, September 9, 2008

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China-made batik saturates local market

BATIK HEAVEN: A sales clerk arranges batik clothes at a stall at the Batik Exhibition at the Industry Ministry in Jakarta on Monday. The exhibition, which ends Friday, showcases a wide range of traditional and modern batik clothes. (JP/Ricky Yudhistira)

Juggernaut manufacturer China is swallowing almost everything the world's heritage has to offer, including Indonesia's traditional batik.

China apparently took up producing batik three years ago, following in the steps of Malaysia, Thailand, Vietnam and Singapore.

With the cost of producing low-end batik deemed too expensive in Indonesia, China has filled the gap by supplying the Indonesian market with cheaper products that are mostly smuggled into the country.

Fauzi Azis, the Industry Ministry's director general for small and medium businesses, on Monday alleged Indonesian businesspeople were involved in smuggling textiles with batik print in from China.

The ministry estimates the domestic market is currently saturated with illegally imported batik valued at Rp 290 billion (US$31.52 million), with most of the products coming from China.

The domestic batik market was valued at Rp 2.9 trillion last year, with the influx of illegal batik distorting this figure by up to 10 percent, Fauzi said.

"With the batik market growing by 5 percent to 10 percent annually, illegal batik imports will amount to at least Rp 290 billion this year," Fauzi said after the opening ceremony of a batik exhibition at the ministry.

Ika Wahyudi, treasurer of the nonprofit organization Indonesian Batik Foundation, agreed there was a problem with spiraling illegal batik imports, although the foundation had yet to calculate the values or the amount of losses to small and medium businesses.

"Businesspeople are worried about this issue," he said.

"It puts domestic batik producers at risk."

The local batik industry employs about 792,300 workers.

Ika said he expected to meet with Trade Ministry officials to discuss ways of addressing the issue.

Fauzi said the Industry Ministry had sent a letter to the Trade Ministry, calling for regulation in the domestic batik market to prevent the influx of foreign-made batik.

"Industry Minister (Fahmi Idris) has written to the Trade Ministry several times to help resolve the problem of illegal imports of batik textiles," he said.

Diah Maulida, the Trade Ministry's director general for foreign trade, declined to comment on the issue.

Local businesspeople allegedly smuggle textile with batik prints to be tailored in locally.

Indonesia, Southeast Asia's largest economy, is currently experiencing a boom in sales of batik, with the product growing in popularity among young consumers.

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