Spasi-id.com - Chairman of the Indonesian Filaments and Filaments Association (APSyFI), Redma Gita Wiraswasta revealed chronological behind his column of 60 textiles that led to the dissolution of the Work Relations (PHAKs) of 250 thousand workers during the 2022- 2024 period. This phenomenon shows a serious crisis that has plagued the national textile industry due to the massive pressure of imported goods, both legal and illegal.
According to Redma, the Indonesian textile industry actually recovered from the impact of COVID-19 in 2022.
"During 2022, our industrial growth has reached 9%, which means we are positive," reveal Redma to CNBC Indonesia, Friday (3 / 1 / 2025).
The beginning of industry at that time, he said, was driven by the zero covID policy in China, which led to the port of the Bamboo Curtain. Therefore, the local Indonesian market is completely dominated by domestic products, and industrial growth is restored. However, the situation changed drastically in the IV-2022 quarter when China began to loosen that policy.
"China's ports are opening up, and the goods from there are starting to flood the Indonesian market,
Those conditions mark the start of major pressure on the local textile industry.
The entry of an import product from China, which was sold at a very low price due to overstock for nearly two years, was a major factor that hit the Indonesian textile industry during 2023.
 |
The atmosphere is the condition of thousands of sewing machines covered in cloth and unused in the area of the garment factory, the district, Bogor, Thursday, (13 / 6 / 2024). (CNBC Indonesia / Muhammad Sabki)
"China's goods are in large quantities, pressing local products. Over 2023, a lot of companies started reducing labor, started getting layoffs," expose him.
Nevertheless, by 2023 most companies were still able to survive despite their declining production capacity. A lot of factories are reducing their labor gradually before it's actually closed the next year.
But 2024 was the top of the crisis for the national textile industry.
"During 2023, layoffs continue to occur. While in 2024, many factories finally decided to close permanently," said Redma.
Some of the striking examples include Alenatedes who fired 700 workers and shut down the plant, as well as the Asian Pacific Fiber in the Clairvoyant that fired 2,500 employees at the end of 2024 after a series of incremental layoffs.
Besides, there's a case like Sulindafin that chooses a full lid in 2024 after several times stopping production. The company originally fired heavily in 2022, giving severance, then reoperating with the daily work system in 2023 before finally surrendering to market pressure.
Redma emphasized, illegal imports or smuggling have worsened the national textile industrial conditions. The illegal goods entered the Indonesian market at prices below average, making local products difficult to compete.
"The main reason these companies are shut down is because of imports, both legal and illegal,
Furthermore, even though APSyFI recorded the total estimate of layoffs reaching 250 thousand people, Redma admitted it was difficult to get the exact data from each company. He claims that over 250 thousand workers have been fired and 60 factories have collapsed.
"Many companies don't report their layoffs in detail and only report when they're fully closed," obviously.
That data is calculated based on the decline of production utilization which is indicative of the lack of labor needs.
Earlier, Vice Minister of Commonwealth Immanuel's Ebenezer Gear opened data related to the number of textile factories that collapsed to 60 factories with about 250 thousand people layoffs. This happened within 2022 to 2024.
A familiar man at Noel's place revealed the data he got from the Chairman of the Fiery Producers Association and the File String, Redma Gita Wirawasta. The cause of the collapse was 60 textile factories because of illegal imports that worsened the textile industry and textile products.
"According to APSyFI, in the last two years 60 factories have been threatened by illegal imports, there has been 250 thousand Labor Dismissal (fire). I asked if the APPROFI data was correct. If that's true, then the relevant agency should take concrete steps," they say in a statement quoted Friday (3 / 2025).
