London Calling for Young Indonesian Innovators

Jakarta Globe, Sylviana Hamdani, June 27, 2011

From left, UK Ambassador to Indonesia Martin Hatfull; Perdana Karta Yudha,
 national winner in the screen category (2010); Muhammad Lukman, international
 runner-up in the interactive category (2010); and the ambassador’s wife,
Phyllis Hatfull. (Photo courtesy of the British Council)

Sometimes, all you need to do is get two creative people together in the same room and magic will happen. That’s a big part of what the International Young Creative Entrepreneur Awards are all about.

Take, for example, Indonesian fashion designer Oscar Lawalata. In 2009, he won the fashion category at the IYCE Awards. That gave him the opportunity to present his fashion collections and business ideas to British designers in London.

It was there he met renowned textile designer Laura Miles. Laura and Oscar quickly became friends due to her interest in tenun ikat, a hand-woven textile with tie-dye motif from Sumbawa, West Nusa Tenggara, that Oscar brought to London for his visit. She loved the uniquely Indonesian textile so much that she collaborated with Oscar to make a line of clothing using tenun ikat, which was presented at Jakarta Fashion Week in 2010.

“Oscar’s win was quite phenomenal,” said Elsa Sasmita, a program officer for the British Council. “One thing leads to another. We’ve heard that this year, Oscar will also collaborate with famed British milliner [hat designer] Justin Smith, whom he also met during his visit to London.”

Oscar is one of many success stories to come out of the IYCE Awards. Since their inception in 2006, the IYCE Awards have helped highlight and connect more than 650 creative entrepreneurs from Indonesia with UK businesses and industry leaders. The awards have also given Indonesian entrepreneurs global exposure and helped them broaden their international networks.

“The IYCE Awards are designed to develop talented local entrepreneurs,” said Keith Davies, country director of the British Council in Indonesia. “We’ll help them grow their businesses through this program. In return, they’re expected to develop creative industries in Indonesia.”

The IYCE awards honor entrepreneurs from four creative industries — design, fashion, interactive media and film. The British Council has selected three judges for each category of the competition. They are professionals, academics and members of the media. They include Arief Suditomo, editor in chief of TV station RCTI, in the film category, and designer Edward Hutabarat in the fashion category.

This year, the British Council decided to broaden the awards’ age limit, which had required entrants to be between 25 and 35 years old, to between 21 and 40. “We’ve been seeing a lot of qualified applications from beyond those [previous] ages,’’ Elsa said. “That’s why this year we decided to give more opportunities to more people by broadening the age limit.’’

From the 153 applications received this year, the judges have selected 18 finalists. Among them are Affi Assegaf, owner of femaledaily.com, fashionesedaily.com and mommiesdaily.com, who is a finalist in the fashion and interactive media categories; Titis Sapto Raharjo, owner and editor of Movieholic Production, in the film category; and Mufti Alem, owner of Greeneration Indonesia, which produces environmentally friendly products, for the design category.

“I’m very impressed with all the candidates,’’ Arief said. “They’re all highly creative and have brilliant ideas.’’

“Their creativity and business minds are excellent,’’ Edward said. “Some of their products are lacking a sense of cultural identity. This is very important, as that is what gives Indonesian products their competitive edge.”

The finalists will go through one more judging phase from July 3 to 6, during which they will receive business coaching from experts and visit successful entrepreneurs and businesses.

On the final day, the finalists will give a presentation to the judges regarding their products and business concepts.

“They should highlight five key points — entrepreneurship, leadership, innovation, market awareness and international outlook — in their presentations to the judges,’’ Elsa said.

The names of the winners will be announced on July 6 at the IYCE Awards night, which will take place at the Pekan Produk Kreatif Indonesia (Indonesian Creative Product Week) at the Jakarta Convention Center. The winner in each category will get a seven-day, all-expenses-paid visit to the UK to inspire them with new ideas and introduce them to industry leaders and possible business partners.

“This is what Indonesian entrepreneurs need now,” Edward said. “We have to build on our international outlook. The UK is the place to do that because they have many international artists who can open doors for our local industries, allowing them to reach the global market.”

This year, the winner of the fashion category will attend London Fashion Week in September, while the winner of the design category will attend the London Design Festival, also in September. The winner of the film category will attend the London Film Festival in October, and the winner of the interactive media category will attend the Power to the Pixel workshop the same month.

“We’ve also designed specific programs as well as prearranged meetings and special events in which the winners will meet people in the creative industries in UK,” Elsa said. “They can present their ideas and products to these people and perhaps build the foundations for future collaborations.”

“We hope to become a bridge between the UK and local Indonesian businesses,” Davies said. “We want to develop Indonesian creative businesses to grow in the international market.”

Edward was upbeat about the future. “All of these industries are fueled by our minds, a resource that will never deplete or run out.”

 

For more information on the IYCE Awards 2011, visit www.thebritishcouncil.org.

Surakarta to Send Solo Batik Carnival to Singapore

Tempo Interactive, Thursday, 17 December, 2009 | 12:45 WIB

TEMPO Interactive, Surakarta:Surakarta will send tourism ambassadors to the Chinghay Festival in Singapore in February next year. In this world class event to commemorate Chinese New Year, Surakarta will present the “Solo Batik Carnival,” a batik-costumed party that has been held two times in Surakarta.

”The Solo Batik Carnival is the only delegation from Indonesia,” said the Head of the Surakarta Culture Office Purnomo Subagyo yesterday.

There are 100 participants of the festival that will be held in the Formula 1 circuit.In addition to 60 Solo Batik Carnival participants, they will invite several stakeholders in the tourism industry, such as hotel, airline, travel agent and tourism entrepreneurs.

“Besides the show, we will hold a business matching,” said Purnomo. In this activity, tourism business entrepreneurs will present the potential of Surakarta tourism to future consumers and stakeholders.

The Surakarta government has budgeted a Rp500 million from the 2010 regional budget for this activity.

AHMAD

Brightspot Market An Emporium of All Things Cool

The Jakarta Globe, Lisa Siregar

Brightspot is a curated market where organizers invite unusual brands to bolster the commercial ambience. Photos courtesy of Brightspot.

Brightspot Market is no ordinary bazaar. This event is a curated market, held every three months, with a different concept at a different venue. The Christmas edition, is set to open on Friday at Plaza Indonesia.

At their last event, 12,000 visitors packed the four-day market at Grand Indonesia in September. They either came to shop at the more than 20 booths that sold things such as clothes, books, bikes and cupcakes, or just hang out.

The booths at Brightspot are personally designed by tenants. At the last event, Katallog, a T-shirt seller, displayed its products on a pile of boxes and sloppy wooden racks. Instead of the brand’s name, “Sorry for the mess …” was written on the wall. Melissa, the popular brand of jelly shoes, glued giant lollipops on the bright pink wall in their booth, while a DJ booth was constructed from blackboards with the name of whoever was playing at the time chalked on.

When the organizers describe Brightspot as “a four-day market of all things cool,” they mean it.

“It’s a hip place because we also have a DJ on the spot,” said Nazyra Noer, who works in public relations for Future 10, the company which organizes Brightspot.

“People can feel the ‘cool’ ambience when they come.”

Future 10 isn’t interested in mainstream brands either. From the beginning, they decided the event would be a chance for creative local entrepreneurs to sell their wares. “Brightspot is a curated market, which means we choose every tenant for this event,” Anton said.

About 10 people in the organizing company, all with backgrounds in art, retail and music, are involved in selecting the tenants.

Having organized various events from music gigs to sales events for 14 years now, the crew from Future 10 all have their fingers on the pulse of their target market — Internet savvy young people aged from their teens to 35.

When the eX mall offered space and asked them to hold an event this year, Brightspot was originally intended to be a music gig.

“But we realized that that’s been done very often,” Anton said. And so the Brightspot market concept was born instead.

The Future 10 crew is mostly interested in artsy and quirky, unusual items.

“We wanted to offer a different shopping experience that made sense,” Anton said. “It’s not like going to a big mall and see similar things everywhere.”

Details to create ambience are also an important element. Tenants may decorate their own booths as they like, though the organizers give some direction and advice.

“We tell them that it is a form of trade show, which means people from large retailers from foreign countries will also visit as well,” Anton said.

“We want visitors to appreciate the creative ambience when they enter the market, the booth is a blank canvas for [retailers] to express their brand,” Nazyra said.

This time, more than 30 brands will participate in the market, including Cleo Awards finalists from the recent Jakarta Fashion Week showing off their collections.

Keeping with the fashion theme, Nina Nikicio will launch a signature dress that can be used to create up to 25 different looks. There will also be limited edition accessories by Nikidee on sale.

Other brands to make an appearance are Aksara bookstore, which is giving discounts on all books at the market, and Seba men’s footwear from Bandung.

Brightspot will also feature Scooter99, a company specializing in reconditioning scooters and building sidecars. The market will introduce scooters that have never been shown or sold in Indonesia before.

“Basically, we try to provide everything that has something to do with lifestyle,” Nazyra said.

Brightspot Market
Dec. 10-13
From 11 a.m. to 11 p.m.
3rd floor Plaza Indonesia (next to Jade)

Retailers include:
Aksara (books and gifts)
Danjyo Hiyoji (women’s and men’s apparel)

Monday to Sunday
(women’s and men’s apparel)
Seba Shoes (men’s footwear)
Melissa by 707 (women’s shoes)
Feiyue by 707 (men’s shoes)
Katallog (gifts and accessories)
Cotton Ink (women’s accessories)
Scooter99 (scooters)
Koi restaurant (food and beverages)

International Batik Week in Pekalongan

Thursday, 09 April, 2009 | 15:59 WIB

TEMPO Interactive, Pekalongan:The Pekalongan municipality plans to hold the International Batik Week on April 20 to May 3, 2009 to introduce locally-mdae batik to the world. “We will feature seven activities relating to batik,” said Doyo Budi Wibowo, Pekalongan Tourism and Culture Office chief in charge of tourism, yesterday.

According to Doyo, the exhibition will follows the first event in 2007. This year, the committee will present a culinary feast, fashion on the road, batik carnival, a seminar and dialog, cultural and traditional performances, batik design and painting competition, batik-making demonstration, and how to use the canting (small dipper used to apply wax in batik process).

Five countries, 18 provinces, 30 regencies/municipalities, three departments, one ministry, as well as local and international batik lovers and collectors will take part in this event. Four artists will also be performing in the exhibition. “Besides enjoying the art of batik, visitors can also see batik demonstrations and how to use canting as the main tool to paint with fabrics,” Budi said.

The batik exhibition is supported by state-owned railway company PT Kereta Api Indonesia (PT KAI), which has prepared a tourism train to facilitate visitors from outside Pekalongan. Selamet Prihantono, Pekalongan Trade Industry, Cooperative, and Small to Medium Scale Businesses Office chief, said the Pekalongan municipality hoped the event can increase the income of batik makers and artists in Pekalongan. “The event can also generate interest for the international batik business,” he said.

Selamet added that the exhibition will feature a number of batik producing countries in Southeast Asia where they will introduce their own batik pattern and specialities. He hoped the exhibition can bring out creativity and interaction among local batik artists, who have only been marketing their products in their respective countries.

EDI FAISOL

Textile makers ponder new markets as crisis hits

Yuli Tri Suwarni, The Jakarta Post, Bandung | Fri, 01/30/2009 1:24 PM  

Several textile and garment makers in Bandung have been forced to cut prices and lay off workers as international orders dry up amid a world sweeping financial crisis.

Some are looking for new markets outside of Europe and the United States, which have posted reduced orders.

Ade R Sudrajat, secretary of the Bonded Zone Entrepreneurs Association, said some 25 percent of its members had slashed production due to reduced orders.

The association groups 100 exporting firms in Bandung, Bekasi, Cikarang, Merak and East Java.

An electronics producer in Bandung has closed down and others have laid off up to 300 workers.

Ade, who is also manager of export/import firm Dewhirst, said she advised companies to employ efficiency measures, but urged them not to lay off workers.

She said she managed to maintain her 5,300 workers at a factory producing Marks and Spencer shirts and trousers in Rancaekek, Bandung regency with efficiency measures such as employing more workers than needed for certain tasks.

Ade also said she was looking for new orders so she could avoid resorting to layoffs.

“Despite the crisis, we have still been able to ship 200,000 shirts and trousers every week to Europe and the US,” she said

Liem Jo Ping of CV Ceika Pauli Industry said he would wait to see what course the financial crisis would take before he resorted to radical measures, adding that the present crisis differed from the 1998 Asian financial crisis. 

“Currently, buyers in Europe and the US are experiencing a shortage of orders while in 1998, exporting firms reaped huge profits because American and European buyers were not affected by the Asian crisis,” she said.

“I prefer to wait and look to new markets. I have been exporting woven clothes for 20 years and this is the first time I have found it difficult to get orders.”

Liem said her factory in Rancaekek produced 1,000 to 2,000 items of high-end woven clothes every week.

Government To Support Handicraft Industry

The Jakarta Globe, Dian Ariffahmi & Teguh Prasetyo, 22 December 2008

The government plans to host hundreds of promotional events and trade shows in 2009, which it has dubbed the “Year of Creative Industries” in response to complaints that it isn’t doing enough to stop foreign producers from cashing in on Indonesia’s cultural heritage by selling imitation handicrafts, officials have said. 

President Susilo Bambang Yudhoyono will officially launch the campaign today in Jakarta. 

Traditional Indonesian products such as batik are increasingly being imported from countries such as China and Malaysia, drawing complaints from local producers. 

“We will actively promote Indonesia’s traditional culture so the world can learn about our heritage,” said Subagyo, director general for domestic trade at the Ministry of Trade. 

Trade Minister Mari Pangestu said the government would promote local products through events and help Indonesians working in the creative industries to protect intellectual property. 

The creative industries, which include sectors such as handicrafts, fashion, film and furniture production, make significant contributions to Indonesia’s gross domestic product and employ 5.4 million people, Pangestu said. 

“People from around the world will soon be able to recognize authentic Indonesian batik,” Pangestu said. “Some countries may claim to have similar batik, but they don’t.” 

The Trade Ministry has invited young entrepreneurs from 14 creative industries to showcase their products at promotional events and trade shows next year. 

Tonton Taufik, a businessman who exports rattan furniture products to more than 50 countries, praised the government initiative, saying it would help accelerate growth in the creative industries. He said he had earned $1.5 million this year by exporting his own products and helping other rattan and handicraft producers expand production and exports to overseas markets. 

“I work at home and market my rattan furniture on the Internet, and my shipments to overseas markets have been increasing steadily every year,” he said. 

Film-industry professionals, meanwhile, say Indonesian moviemakers have limited exposure overseas and almost exclusively rely on local audiences. Mira Lesmana, one of the country’s most critically acclaimed young directors, said Indonesian filmmakers should start seeking international recognition. 

Adrian Elkana, director of Castle Productions, the only producer of animated films in Indonesia, said the film industry had the potential to expand domestic and foreign sales. 

Indonesia’s animation industry has already been outsourcing on foreign film productions for several years, he said. 

Film critics “have been encouraging local filmmakers to produce and export animated films that are based on Indonesian culture and characters, but still suited to contemporary trends and the demands of teenagers,” Adrian said. 

Indonesia’s exports have slowed down in recent months due to the global economic slowdown. Exports in October fell 11.6 percent from September, although they were up 4.9 percent compared to the same month last year. 

Non oil and gas exports reached $9 billion, or down 8.1 percent from September.

Garment exports doing well despite global crisis next year

The Jakarta Post, Jakarta | Mon, 12/15/2008 10:36 AM  

Thanks to investment worth around Rp 4 trillion (US$363 million), garment-making businesses are expected to grow by 11.4 percent by year-end, and another 10 percent next year. 

Garments account for 60 percent of Indonesia's textile and textile products (TTP). 

Garment exports are projected to reach $6.4 billion this year, from $5.82 billion in 2007, said Kurnia Saputra, a board member of Garment Partnership Indonesia, an initiative by the USAID-financed SENADA to help raise industry competitiveness. 

Growth in garments will be higher than the forecast 8 percent increase in the total exports of TTPs, which will grow from $10.3 billion in 2007 to an estimated $10.81 billion this year, Kurnia said on the sidelines of a link-and-match meeting between garment producers and buyers held by SENADA last week. 

Although several textile companies have had to lay off workers, garment makers have been doing well and have absorbed another 50,000 workers this year, according to Redma Gita Wirawasta, executive director of Indotextiles research center. 

There are already more than 1 million workers in the garment industry. 

"This (increase) was pushed by an increase in investment this year of Rp 4 trillion, which was the highest investment in the industry for the past five years," Redma said. 

"This gives us optimism about next year's projection of garment exports, which will likely grow by another 10 percent," he said, adding that "there have been no layoffs in garment companies this year". 

Major destinations of garment exports are the United States, contributing 26 percent, the European Union (12 percent), ASEAN (5 percent) and Japan (3 percent). 

Indonesia's garments account for only 3 to 4 percent of the world's total, Kurnia said. "But we can strengthen our global position as an important garment industry player by pushing for greater compliance with global manufacturing practices." 

Complying with good industrial practices such as meeting requirements for safety and working conditions will boost sales because international buyers will have no doubts about dealing with complying companies, he said. 

Total sales of TTPs in 2008 are estimated at $16.25 billion, a slight increase from last year's $15.09 billion, with the domestic market absorbing around 33 percent of the whole. 

Mukhtar Ahmed, vice president of OSG LiFung Indonesia, said that globally Indonesia was ranked ninth among TTP exporters and 11th among garment exporters. 

Ahmed said that despite the current global crisis, the United States and Europe would remain major destinations for Indonesian garment exports, while countries in the Middle East and the former Soviet Union would act as buffer markets. 

"The weaknesses of the Indonesian garment industry lie in communication and marketing and also in research and development," he said. (iwp)

Garment maker strong despite global crisis

The Jakarta Post, Jakarta | Tue, 12/09/2008 11:44 AM  

Publicly listed garment manufacturer PT Pan Brothers has pledged to continue with its construction of two new factories, as it has had no changes to orders or contracts despite the global financial slowdown. 

"We will need 4,000 workers at the new factories to achieve their full operation scheduled for next year," finance director Fitri Hartono told The Jakarta Post on Friday. 

The new factories are being built in Solo and Boyolali, Central Java. 

Pan Brothers currently employs more than 11,000 workers in its factories in Tangerang, West Java, and Solo, Central Java. 

The company makes products to order from international brands such as Calvin Klein Jeans, New York & Co, Nautica, Chaps Polo Ralph Lauren and Marks & Spencer. Its subsidiary in Tangerang, PT Pancaprima Ekabrothers, makes jackets for brands such as Nike, Adidas, Reebok and The North Face. 

All products are exported overseas, including to the United States, Europe, Canada and Australia. 

The company's expansion plan runs counter to the current trend where many industries -- including garment and textile businesses -- are experiencing cancellations of or reductions in orders as a weaker global economy trims demand. 

The Ministry of Manpower and Transmigration has said it expects 40,000 workers to be laid off in the near future. With the global financial crisis dragging the world's economies into an recession estimated to be the worst in a decade, economists and business associations have said Indonesia's economy will not be left untouched and that the inherited negative impacts could be long lasting. 

Things however are looking good for Pan Brothers. 

From 2007 to 2008, the company spent US$18 million on capital expenditure, including for the construction of its new factories. It plans to spend $32 million more to finance its expansion until 2012. 

According to Fitri, the company's orders for next year increased because its partners had moved their production suppliers from other countries to Indonesia to cut production costs. 

"So, we see this recent global crisis as a business chance for us," she said, adding the company had signed only a six-month production contract. 

In the first nine months of 2008, the company accumulated Rp 1.4 trillion ($115.95 million) in sales revenue, a 12.3 percent increase from Rp 1.24 trillion during the same period last year. Its target is Rp 1.8 trillion in sales revenue in 2008, an 11 percent increase from Rp 1.62 trillion last year. 

The company recorded Rp 18.9 billion in net profit during the January-July period, a 3.4 percent increase from Rp 18.3 billion during the same period last year. 

It has yet to record its net profit in the first nine months of the year as it is still calculating its estimated tax obligation. 

It has set a target of a 5 to 10 percent increase in sales revenue next year. (hwa)

Indonesia`s batik in great demand at exhibition in Berlin

London (ANTARA News) - Indonesia`s silver accessories and batik products attracted many visitors at the Import Shop Berlin 2008 which was taken part by 540 participants from 60 countries at Messe Berlin exhibition hall, an official said. 

"Visitors are packing the Indonesian pavilion, and showing their enthusiasm toward the displayed handicraft products with traditional patterns and also batik clothes," first secretary dealing with social and cultural affairs at the Indonesian embassy in Berlin, Agus Priono, said here Thursday. 

"Indonesia`s participation in the event has improved which is marked by the increasing number of visitors coming to the Indonesian pavilion and also the increasing transactions taking place during the exhibition," he said. 

According to Agus, almost all the Indonesian participants considered the Berlin exhibition as a promising and effective promotion of their products. 

"Getting enough experience on market potentials in Berlin and the typeps of products which could attract visitors in this year`s exhibition, small-medium entrepreneurs stated their intenion to come again in next year`s Import Shop Berlin 2009," Agus said. 

Visiting Chairman of the People`s Consultative Assembly (MPR)Hidayat Nur Wahid and an entourage also visited the Indonesian pavilion and gave support to Indonesian participants, during their official visit to Germany. 

Agus explained that the event was an annual exhibition themed Global Market, Local products. The first was held 40 years ago and the Germans are always looking forward to visiting it. 

At the event, he said, the organizing committee offered a slogan "Shop Like You`re On a Vacation" to give shopping opportunities to visitors without having to go abroad. 

Agus also said that Indonesia as one of the exhibitors with silver accessories and batik garments of high quality and competitive prices.

Museum exhibits rare West Java batik

The Jakarta Post, Jakarta | Wed, 11/12/2008 10:45 AM 

TOO SEXY FOR BATIK: Models present modern batik clothes at the opening of the West Java Batik Exhibition at the Textile Museum in Central Jakarta on Tuesday. The museum organizes the two-week exhibition to promote West Javan batik. (JP/Nani Afrida)

 

Batik took to the catwalk Tuesday in a flashy display of modern fashion during the opening of the West Java Batik Exhibition at the Textile Museum in Central Jakarta. 

"I thought batik only came from Central Java. I never heard of West Java batik before," said a visitor to the exhibition, which is being held until Nov. 23. 

West Java Batik, based on a tradition dating back to 1430, is not as well known as batik from Solo, Yogyakarta and Pekalongan. 

"Only a few people know that West Java has its own traditional batik, which comprises the history and philosophy of the region in its beautiful motifs," said Dyah Damayanti, the head of the museum. 

The exhibition, titled "West Java Tradition", displays about 100 various kinds of batik from several areas in West Java, such as Tasikmalaya, Ciamis, Garut, Cirebon, Bandung and Indramayu. 

"In some West Java areas, batik is already extinct, like batik Ciamis," Dyah said. 

West Java Batik features motifs derived from the Sunda culture, which was influenced by both Hindu and Islam as well as cultures from China, India and the Netherlands. 

Among the most recognizable of the West Java batik motifs are buketan galang gasi, parang kembang, lunglungan, urang ayu and mega mendung. 

West Java batik is different from Central Java batik because of its use of vibrant colors like green, red, orange and blue. 

Antique batik fabrics are on display at the exhibition, including a rare 300-year-old banner from Cirebon that features Arabic calligraphy. 

"We hope that this event will inform visitors that Indonesia has many places with a unique batik style," Dyah said. 

The fashion show featured the designs of several prominent batik designers and producers in Indonesia, such as Danar Hadi, Komar, Tiga Putri and Warna Alam Roso. 

The exhibition is the result of a scenography workshop held in cooperation with the Dutch government. (naf) 

Textile Museum
Jl. KS Tubun No. 4
Tanah Abang, Central Jakarta

Opening hours:

Tuesday - Thursday, Saturday - Sunday : 9:00 a.m. to 3:00 p.m.

Friday :  9:00 a.m. to 12:30 p.m.

Monday and public holidays: closed

Govt supports 3 industries: Shoes, sugar, and textiles

Yuli Tri Suwarni, The Jakarta Post, Bandung | Mon, 11/10/2008 11:17 AM  

The government is expanding its industry revitalization program next year, with footwear manufacturers the latest to join a list of industrial sector subsidy recipients -- in addition to textiles and sugar -- to help renew machinery and boost output. 

The Industry Ministry will facilitate the disbursement of Rp 55 billion in interest subsidies for footwear manufacturers, as part of a total of Rp 360 billion set aside in subsidies for the three industries, director general Anshari Bukhari said Saturday in Bandung, West Java. 

"The funds are allocated on the government's 2009 state budget and have been approved by the House of Representatives," Anshari told a discussion forum. 

This is the expansion of a program started two years ago designed to help targeted strategic industries to bolster production capacity. 

Under this program, which originally only covered the textile industry, the government would subsidize part of the interest rate which banks charged on loans so that manufacturers could buy new machinery. It disbursed Rp 175 billion (US$18.77 million) to 78 textile and garment manufacturers in 2007 and expects to disburse another Rp 210 billion this year. 

For next year, textile and garments makers will be entitled to another Rp 255 billion in subsidies, while sugar factories will be entitled to Rp 50 billion. 

"We expect that this expanded program will not only stimulate investment in the three sectors, but also help improve competitiveness," Anshari said. 

Businesses have welcomed this government program, saying it will definitely help them increase production capacity and benefit their industry as a whole. 

The Association of Indonesia Textile Producers (API) has said that with the program, the industry is optimistic that it can cope with any decline in traditional export markets despite the current global economic downturn. 

It expects total exports to still grow by at least 7 percent next year, mostly resulting from export market diversification. Last year the value of textile exports reached $10.06 billion. 

The Indonesia Footwear Producer Association (Aprisindo) meanwhile said that even this year, the industry was doing relatively well and remained on course to achieving a 10 percent export growth target by end year, probably reaching an export volume of $1.76 billion. 

Meanwhile, ministry director Budi Irmawan said up to 380 footwear makers have so far applied to make use of the subsidy scheme and this volume of demand would likely continue. 

He added that most of the machinery now used by footwear manufacturers dates back to the 1980s. 

Anshari added that the government would in the near future further expand its revitalization program. 

"We're considering providing subsidies for targeted industrial cluster areas in the country. This would not be via an industry-based subsidy, but via industrial clusters. But, we're still working out the details," he said.

 

Nylon yarn makers expand capacity on robust demand

Mustaqim Adamrah, The Jakarta Post, Jakarta | Fri, 11/07/2008 10:53 AM  

Two nylon yarn producers, PT Indachi Prima and PT Matahari Sentosa, are increasing their production capacities, citing the prospect of robust demand on government spending. 

Head of the Indonesian Textile Association's (API) West Java chapter, Ade Sudrajat, said the companies planned to spend a total of Rp 50 billion (US$4.58 million) on their expansion projects. 

"(Indachi) will spend Rp 30 billion and (Matahari) Rp 20 billion to increase their capacities by an average of 20 percent," he said Thursday. 

He, however, was unable to provide the figures of the two companies' current capacities. 

Indachi, situated in Karawang, West Java, is controlled by a Japanese firm, while Matahari is a local firm, situated in Cimahi, Bandung, the province's capital. 

He said Indachi's project was already underway and slated for completion by the end of this year, while Matahari would start its project early next year. 

Continued high demand for nylon yarn products, he said, triggered the expansion. 

Ade said global financial turmoil had not affected demand for nylon yarn products much. 

"Demand is relatively high for nylon yarn as government spending remains stable and the global turmoil only affects the market of daily apparel," he said. 

The nylon yarn produced by the two companies is commonly used to make swimsuits and army uniforms, as well as waterproof materials, like tents and rain coats. 

The two companies export their products to Middle Eastern and European Union countries, he added. 

While the outlook for the global nylon yarn market remains positive, API has forecast some 120,000 temporary layoffs next year due to a slowdown in the U.S. economy. The United States is the main buyer of Indonesian textile products.

Harvey Nichols opens amid economy slowdown

Prodita Sabarini, The Jakarta Post, Jakarta 

The global financial crisis has affected the fashion industry, prompting one of the British high-end fashion retailers Harvey Nichols to set modest targets for its newly opened store in Jakarta. 

The British luxury fashion retailer opened late October its 12th store in Jakarta amidst a weakening economy due to the global financial crisis. 

Harvey Nichols Group CEO Joseph Wan said Thursday that he was very happy with the opening of the store but would not expect the store to immediately reach its maximum potential due to the recent economic slowdown. 

"Because of this recession - which is just starting - no question, I would not expect the store to achieve its maximum potential immediately or very quickly. First of all, we have to sail through this storm. So it's a question of realistic expectations," he said here in Jakarta. 

"This time around I also believe that even the wealthy are equally affected (by the financial crisis) or maybe even worse so." 

The opening of Harvey Nichols Jakarta, located in a 9,500 square meter site in the posh Grand Indonesia shopping mall, in Central Jakarta, was planned three years ago. 

"At that time nobody knew that it (financial crisis) was going to happen. Yes, now, we can see the financial crisis and how events unfolded." 

"But the point is however big, however painful, this is just an economic cycle. Businesses with the relevant systems, with a good balance sheet, they of course can ride the storm by putting measures on cost controls, inventory management and that kind of things. Then obviously they can sail through, and become stronger when the economy recovers," he said. 

Wan said that Jakarta was chosen over Kuala Lumpur and Singapore due to having the most potential buyers."In terms of the number of wealthy households already here, our information says that Indonesia has the highest. Because, even three years ago, we were told official statistics indicated there were at least 3,500 wealthy households in this country, each one worth at least US$100 million. And also we were told, 70 percent of those 3,500 households, actually live in Jakarta," he said. 

Meanwhile, Indonesian government data released last month revealed there are 63,000 bank accounts across the country containing more than $200,000 and a further 90,000 with more than $100,000. 

The Jakarta Harvey Nichols store was designed by Dough Shaw and Andy Thaemert from Callison. For the store they combined modern brit op-art with subtle touches of local culture, with references to designs based on the parang batik pattern. 

Shaw said that they designed each of the three floors with a unique environment taking up an idea or art format for each of them. The lower ground was designed like an art studio, the ground level is based more on an art gallery, and the upper ground floor resembles more a collector's residence. 

The store holds hundreds of international brands, consisting of men's and women's wear, cosmetics, footwear and accessories. Among the fashion brands are Michael Kors, Stella McCartney, Armani and Givenchy. 

Wan said that the advantage of Harvey Nichols was that the collections on the racks were heavily edited by their team of experienced fashion buyers. 

"We have a team of very experienced professional fashion buyers. They go around the world cherry picking every season for the best of the best, for this climate as well," he said. 

Harvey Nichols also has a personal shopping department - where a customer can wait at a designated lounge while shop assistants search for the stuff the customer needs to buy. 

"...other department stores might not have (that kind of service)," he said.

Yogya design center gets UK, U.S. assistance

Sri Wahyuni, The Jakarta Post, Bantul, Yogyakarta

A favorite tourist destination second to Bali and home to thousands of handicraft industries, Yogyakarta, has announced plans to build a design center to help improve competitiveness of Indonesian handicraft products on the international market.

Warwick Purser, owner and president director of PT Out Asia, a major exporter of handicraft products in Bantul, gained support from the provincial administration and several international institutions with his proposal to build the center in Tembi hamlet, Bantul regency.

The center would be supported by an Indonesian competitiveness program called SENADA, run by international institutions including USAID, The British Council and Goldsmiths University of London.

As an initial step, a four-day workshop on sustainable design for home furnishing products is being organized in Tembi with more than 50 leading Indonesian homewares entrepreneurs from Java and Bali.

The workshop officially opened Wednesday and featured seven design experts from a leading design education institution, Goldsmiths, to share knowledge and help establish the center.

Following the workshop, a two-day working session focused on the establishment of the design center and its future activities would be held at the same location, involving locals and other stakeholders.

"We expect to be able to launch the center mid-this-year at the latest," Australian-come-Indonesian Warwick Purser told The Jakarta Post on the sidelines of the workshop Wednesday.

The establishment of such a center, Purser said, was urgently needed to strengthen Indonesia's competitiveness in the international market.

Design, he added, was an essential factor in the successful marketing of handicraft products.

SENADA's senior industry advisor, Patrick Kadian, said design was a crucial, dynamic factor in the market acceptance of home furnishings, with style cycles lasting 18 months on average.

"Results of many market surveys conducted by SENADA, have indicated that Indonesia was considered less competitive in terms of designs, when compared to its Asian rivals like China, Thailand, Vietnam, and particularly the Philippines," Kadian said.

Indonesia, Kadian said, in fact had a strong presence in the international marketplace with its renowned craftsmanship of products made from materials desirable to eco-consumers.

"Proper positioning of Indonesia as a producer of sustainable products, combined with the improvement of practices of leading firms and credible third party certification will make all the difference for Indonesia among the international competition," he said.

Jakarta`s catwalks to feature best of Australian fashion

Jakarta (ANTARA News) - The best of Australian fashion will be on show on Jakarta`s catwalks this month as some of the country`s top designers display their latest spring/summer collections, according to the Australian Embassy here on Monday.

The first Australian Fashion Parade, in Kemang this Wednesday, will showcase the latest collections from 12 prominent designers, including Alannah Hill, Alice McCall, Camilla and Marc Carl, Josh Goot, Kirrily Johnston, Ksubi, Lover Nicola Finetti, Sass & Bide, Tina Kalivas and Willow. It will feature collections that went on show for the first time during the recent 2007 Australian Fashion Week in Sydney.

Australian Ambassador to Indonesia Bill Farmer said he was delighted to have an opportunity to bring the latest collection of Australian fashion designs to Indonesia.

"Many of the designers showcasing their work in Jakarta have attracted international acclaim for their fresh and innovative designs and strong branding," Farmer said. "I am sure their latest collections will be well received in what is a highly discerning market for fashion here in Jakarta."

The Ambassador said Australian fashion was characterised by a rich and colorful mix of styles, inspired by the multiculturalism of contemporary Australian society.

"Our fashions also take their cue from Australia`s outdoor lifestyle and environment," he said. "This is particularly the case for the new, maverick generation of designers who take their inspiration from Australia`s surf and beach culture, graffiti and street art."

Around 60 Australian labels are currently exporting their designs to boutiques and department stores in Asia, Europe and the United States.

The Australian Trade Commission (Austrade) has put together Australian Fashion Parade 2007 in collaboration with Harper`s BAZAAR and FJ`L Boutique. The first event will start from 3pm on Wednesday 7 November at the FJ`L Boutique, Jl. Kemang Raya No 25.