Oyuk Ivani S, Erwin Prima, Jakarta – Chairman of the Indonesian Fiber and Filament Yarn Producers Association (Apsyfi) Redma Gita Wirawasta, said over the past two years, as many as 60 textile companies in the country have collapsed.
Based on his data, Redma said as many as 34 companies closed and stopped operating, the rest made efficiency in the form of reducing labor or termination of employment (PHK), laying off workers, and relocation.
"This has resulted in around 250 thousand employees experiencing layoffs," he said met by Tempo in the South Jakarta area Thursday, December 19, 2024.
Redma said this number has the potential to continue to increase because not all textile companies immediately report to the association when they close. They will usually only report when their obligations to their workers have been fulfilled.
Redma said the collapse of these textile companies was caused by the surge in apparel imports into the domestic market. According to him, the import relaxation policy issued by the government through the Minister of Trade Regulation No. 8 of 2024 had a significant impact on the domestic textile industry.
"This has worsened the condition of the textile industry in Indonesia, which has actually been deindustrialized for the past 10 years," he said.
Redma added that this condition also has an impact on related sectors, such as the petrochemical industry and the production of Purified Terephthalic Acid (PTA), which is the main raw material for textiles.
The textile industry is an upstream-to-downstream industry that involves many parties, so the collapse of the textile industry will affect a number of other related industries. "This reduces industrial utilization and impacts other sectors, such as electricity and logistics," said Redma.
Source: https://en.tempo.co/read/1954997/association-reveals-list-of-60-collapsed-textile-companie