Indonesia’s Textile Industry Faces Crisis Amid Factory Closures And Layoffs
Indonesia’s textile and garment industry is in crisis, with mass layoffs and factory closures threatening its future. Major textile player PT Sri Rejeki Isman (Sritex) recently shut down operations, adding to the closure of 61 factories between January 2023 and December 2024 in Banten, West Java, and Central Java, affecting thousands of workers. PT Mbangun Praja Industri also closed in January 2025.
The Indonesian Filament Yarn and Fiber Producers Association (APSYFI) confirmed the closures, blaming the influx of cheap imported textiles for undermining local competitiveness. APSYFI General Chairperson Redma Gita Wirawasta urged the government to impose tighter controls on imports to protect domestic producers.
Deputy Chair of Commission VII of the House of Representatives, Chusnunia Chalim, called for immediate action to safeguard the industry, stressing that high production costs and declining purchasing power have worsened the situation.
Timboel Siregar, Secretary General of the All Indonesian Workers Organization (OPSI), highlighted the need for quick intervention, including:
- Reintroducing safeguards to limit imports.
- Providing incentives like energy subsidies and affordable financing.
- Encouraging innovation and improving production efficiency.
- Promoting domestic products to boost demand.
- Cracking down on illegal imports.
Without urgent action, Indonesia risks losing its textile sector and becoming reliant on imports, with severe social and economic consequences.
