Adil Al Hasan, Jakarta – Indonesia's upstream textile industry is experiencing a steep downturn, with the Association of Indonesian Fiber and Filament Yarn Producers (APSyFI) reporting the closure of five factories this year alone.
APSyFI Secretary General Farhan Aqil Syauqi said the shutdowns have resulted in at least 3,000 workers losing their jobs. He attributed the closures to heavy financial losses driven by weak domestic sales and a surge of low-priced imported products.
"The flood of dumped imports, especially fabrics and yarn, is the main factor behind these closures," Farhan said in a written statement on Friday, November 28, 2025.
Signs of deindustrialization
Farhan warned that the trend reflects a broader process of deindustrialization within Indonesia's textile sector.
The factories that ceased operations include PT Polychem Indonesia's facilities in Karawang and Tangerang, PT Asia Pacific Fibers' polyester fiber plant in Karawang, PT Rayon Utama Makmur of the Sritex Group, and PT Susilia Indah Synthetics Fiber Industries (Sulindafin) in Tangerang.
He added that six other factories have now seen production fall below 50 percent, with some operating intermittently. Five polymerization machines have halted operations entirely.
Farhan cautioned that more closures may follow in 2026 if the government does not intervene to curb textile imports. He urged authorities to begin by transparently releasing data on companies receiving the largest import quotas, which he said are contributing to the market glut.
"The Directorate General of Customs should have the data. It should not be difficult for the government to act on these findings," he said. "Without corrective steps, another six companies will face bankruptcy because they cannot sell their products in the domestic market."
Producers unable to plan for 2026
The lack of transparency on import quotas has left APSyFI members unable to plan production for next year. Farhan said the situation shows that deindustrialization is "truly happening" in the sector.
At the same time, he welcomed the commitment of Finance Minister Purbaya Yudhi Sadewa to crack down on illegal imports. Farhan said investigations into secondhand clothing imports could uncover fraudulent practices in the broader import mechanism.
"Tracing thrifted imports allows authorities to identify the importers and their backers," he said. "Law enforcement can then determine who is responsible for causing losses to the state. We believe elements within the bureaucracy are also involved."