The growth of Indonesia's textile industry is slowing down and up to the third quarter of this year it was even negative as a result of increasing production costs and declining demand, said economic observer Faisal Basri.

He said the slowing growth of the country's textile industry could continue until next year due to the upward trend in the oil price and sluggish world economy which would in turn push down world market demand.  Basri said banking support for investment in the industrial sector was also still small. Less than 10% of bank credits were channeled to the manufacturing and agricultural sectors.