Chinese and Vietnamese competition claims PT Krene, a manufacturer of bags and computer carry cases in Gresik, East Java, which has gone out of business.

Sales of cars in August 2006 bucked the recent downward trend but year-on-year comparisons paint a still bleak picture. Some say the market will not recover until 2008.

The government is gearing up to force the movement of manufacturing industries to industrial parks, while some lament the lack of infrastructure in such places.

Exports of Indonesian furniture continue to stagnate.