April 17, 2024

Trend Of Layoffs Continue In Indonesian Textile Sector

The trend of layoffs is continuing in the Indonesian textile and garment sector which started since the beginning of this year.

According to the Confederation of Indonesian Workers’ Unions (KSPN) more than 7,000 workers have been laid off since the beginning of 2023 in both the textile and apparel industries.

KSPN President Ristadi pointed out that if the number of layoffs from 2020 is considered then the figure reaches 56,976 people from across several regions in Indonesia.

One of the factors causing this wave of layoffs is the large penetration of imported products, both legally and illegally, which have flooded the domestic market.

This has resulted in stocks piling up in domestic textile and clothing factories, which has resulted in these factories cutting down production or closing down. In both cases, workers are losing jobs.

Another reason is the Russian-Ukrainian war which resulted in inflation increasing in importing countries, dampening consumer buying sentiments, leading to reduction in imports by those countries.

Companies have also started modernising their machineries, which leads to need for reduced labour. The maximum layoffs have taken place in the weaving and garmenting due to modernisation.

Ristadi called on the government to act quickly and address these challenges and at the same time, restrict large scale imports of legal and illegal textiles and garments.

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