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Indonesia’s textile industry suffers wave of layoffs



Indonesia has a population of approximately 220 million. Developing the textile industry and meeting the people’s clothing needs has always been an issue that the Indonesian government attaches great importance…

Indonesia has a population of approximately 220 million. Developing the textile industry and meeting the people’s clothing needs has always been an issue that the Indonesian government attaches great importance to. The textile industry has also become the earliest industry to develop in Indonesia. Currently, textiles and clothing are Indonesia’s fourth-largest export product, but the industry is shrinking due to tight liquidity and lack of demand. In addition, due to rising production costs, more and more Indonesian textile industry workers have been forced to lay off.
A recent report by Indonesia’s “The Jakarta Post” pointed out that since the beginning of the year, at least 6,000 workers in Indonesia’s textile industry have been forced to lay off. It is reported that there are approximately 1.5 million workers in the Indonesian textile industry. As production costs rise and domestic sales decline, Indonesian textile manufacturers are facing increasingly difficult situations, and many workers have been forced to lay off.
Ade Sudrajat, chairman of the Indonesian Textile Association (API), said that inventories of textile manufacturers have piled up, forcing them to reduce the number of workers to reduce production costs.
Sutracha said: “These 6,000 laid-off workers mainly come from several textile companies in Bandung (a city in western Java, Indonesia). If laid-off workers in central and western Java are included, the total number of laid-off workers will reach several Thousands of people.”
Sutracha added that since 2014, the production costs of enterprises have risen rapidly. Due to the increase in electricity and natural gas tariffs and the increase in health insurance rates paid by textile enterprises for workers, more and more textile enterprises 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 it is cheaper and more profitable to import textiles from other Asian countries than to purchase them from Indonesian domestic manufacturers. Therefore, the decline in product sales has also led to local textile manufacturers laying off employees to reduce production.

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Author: clsrich

 
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