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Opportunistic behaviour on institution of textile industry: West Java-Indonesia experience

Author

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  • Sam'un Jaja Raharja

Abstract

The textile industry occupies a strategic position in the Indonesian economy in the value of exports and employment. But now, many textile industries company have a decline competitiveness and business closure due to high production costs. Four major causes of the problems are: inadequate infrastructure, lack of the banking support, the availability of energy and the problems of bureaucracy and institutional practice. Institutional practice in the form of formal and informal rules that should be complementary, cannot work well. Dysfunction of formal and informal rules in the textile industry give slit opportunistic behaviour for the parties involved which in turn causes high costs assured by the company.

Suggested Citation

  • Sam'un Jaja Raharja, 2018. "Opportunistic behaviour on institution of textile industry: West Java-Indonesia experience," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 11(4), pages 323-332.
  • Handle: RePEc:ids:ijepee:v:11:y:2018:i:4:p:323-332
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