Indonesia’s textile industry has shrunk today, with frequent layoffs in factories

According to a comprehensive report by Indonesian media on June 19, the Indonesian textile industry has shrunk since this year, with frequent layoffs in factories. Indonesia is the fourth most populous country in the world, with a total population of about 250 million. The textile industry has always been an area of ​​great importance to the Indonesian government. It is also one of the earliest industries to develop in Indonesia. There are about 1.5 million workers in the Indonesian textile industry. In recent years, textiles and clothing have been Indonesia’s top four export commodities. Since the beginning of this year, due to the weak global economy and insufficient international market demand, Indonesia’s domestic production costs such as raw materials and wages have continued to rise, causing the industry to shrink and more and more textile workers to be laid off. Ad Sutracha, chairman of the Indonesian Textile Association (API), said that the inventories of most textile companies in Indonesia have piled up, forcing them to reduce the number of workers to reduce production costs. This year alone, about 6,000 workers have been laid off in several textile companies in Bandung City, West Java Province. If laid-off workers in other areas of Java are included, the total number of laid-off workers will reach tens of thousands. Sutracha added that since 2014, due to the increase in electricity and natural gas tariffs, as well as the increase in the minimum wage and health insurance premiums paid by textile companies for workers, the production costs of textile companies have risen rapidly, and more and more textile companies have chosen to lay off workers. Cut costs. Not only that, these factors have led more Indonesian businessmen to choose to import textiles from neighboring countries, because the price of textiles imported from other Asian countries is cheaper than purchasing from Indonesian domestic manufacturers. They have also indirectly caused Indonesian domestic textile manufacturers to lay off employees to reduce production. Indonesia’s textile industry has shrunk this year, with frequent layoffs in factories