PROBLEMS, CHALLENGES AND POTENTIAL DEVELOPMENTS ON CLUSTER OF TEXTILE INDUSTRIES IN INDONESIA (Case Study on Cluster of Textile Industries in South of Bandung)
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ABSTRACT The aims of this research are to capture general descriptions or to overview cluster of textile industries in Indonesia. The research is a case study which Bandung was chosen as a sample representation, because according to the data of Industrial Ministry, Republic of Indonesia, year 2005, about sixty five percent (65%) of Indonesian textile industries location are in Bandung and area surrounding. This study focused on problems, challenges and potential developments in order to improve industrial performances as competitive advantages of Indonesia. It has been proven that since many years ago the industries have given significant contribution to devisa of Indonesia, outside oil & gas industries. However, recently years the contribution is lowering because of many reasons. Global market competition forces Indonesian textile products to have better advantages rather than outsider’s products. But in facts, local (domestic) market were fulfilled by foreigners products such as China’s and Korea’s textiles products. The condition were getting worse because export (international) market are also decreasing by the same reasons. Surveys, interviews, and FGDs (Focused Groups Discussions) were conducted to all representations of textile industries stakeholders, as methods of data collections. Furthermore, data and findings research were analysed using SWOT (Strengths, Weakness, Opportunities, Threats) matrix identification. Those findings were tabulated and resumed as an official recommendation as considerants for Indonesian Government to establish precise strategies or policies in order to increase (textile) industrial competitive advantages of nation. Keywords : Cluster, Textile Industries, Strategies, Competitive Advantages, Indonesia.