Monitoring the Socioeconomic Impact of the 2008/2009 Global Financial Crisis in Indonesia - Impact on Community Livelihoods in the Textile Product and Textile Industries in Kabupaten Bandung, West Java

Nina Toyamah • Nur Aini Talib
Report SMERU Research Institute • October 2009 Indonesia

Abstract

The negative impact of the 2008/09 global financial crisis (GFC) has been felt by the downstream textile product and textile (TPT) industries in Desa Solokanjeruk, Kabupaten Bandung, especially the export-oriented garment industry. This industry has experienced a downturn in orders and difficulty in obtaining new orders, but has not reduced the number of workers. On the other hand, small- and medium-size industries are surviving due to an increase in domestic demand during this year's general and presidential elections as well as during the preparations for the Idul Fitri festivity. For that reason, the lives of industrial workers and other communities dependent on the TPT industries in this village are still relatively stable. The village community and workers are not yet aware of the impact of the crisis on big businesses players. Nevertheless, if the difficulties being experienced by large-scale garment entrepreneurs are prolonged, there are concerns that the negative impact will extend to the community. These developments will be the subject of the follow up visit around October/November 2009.

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SMERU Research Institute

Since its establishment in 2001, SMERU has been a leader in poverty and inequality research in In... see more

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DFAT | AusAID