Secretary General of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta said the wave of layoffs could threaten the textile and textile product (TPT) industry in the country. The reason, said Di, is that the national textile sector is not only supported by domestic consumption, but also the export market. Currently, according to Redma, a number of textile companies in Indonesia are starting to improve employee efficiency. By laying off employees. "Now there is a trend to lay off employees. Initially in the garment industry, then it began to expand to fabrics, upstream. It started last month," said Redma, Friday (7/10/2022).

"Exports are still difficult because of canceling orders from the US and the European Union (EU). The conditions there are indeed getting worse, so buyers have started to cancel purchases from the start," he added.

Moreover, he continued, usually countries that have cold winters will prioritize energy spending. With energy costs soaring up to four times, he said, would add to the challenges for Indonesia's textile exports.

"Our exports are around 40% to the US, then to the EU it's 30-35%. That means 70% to these two regions. The rest is to Japan, Turkey, Africa, a little to China. Conditions in these countries are also not too bad. good," he said.

"Therefore, now our utility has shrunk to the range of 50-60%. In fact, we had returned to 100% in the first and second quarters after the restrictions were lifted. But it has started to decline again until now due to economic conditions. Starting from the garment industry to fabrics, even now fiber has started to decrease production," explained Redma.

On the other hand, he hopes that the situation will turn around for the better entering 2023. Therefore, he said, the company is still making the decision to lay off, not to lay off.

"Employees are still getting paid, yes, around 80-90%. So they haven't been laid off, but they have been laid off. However, it's not impossible if the conditions are getting worse over time," he said.

He revealed, due to the effects of the Covid-19 pandemic, the company was still able to pay the employee wages to the maximum. At least, for 8 months since the pandemic worsened and 'stopped' all economic activity.

"Our condition improved at the beginning of this year, until it grew 12-13% in the first and second quarters. However, that's our condition starting from zero. Revenue is still minimal but still costs must be paid. Cash flow is a bit problematic. And now conditions in the export market are problematic," he said.

"If in January 2023 there is a sign of improvement, we still have data, hold it at least until February 2023. But it's starting to thin out," he said.

Therefore, he asked the government not to ignore the screams of the textile industry players.

"Let's say that the export problem is damaged because of the 'given', yes, we can't control it. But, there are things that the government can control if you want to be firm," said Redma.

"That is, taking action against imports that come in without paying taxes. They say the government needs money to increase fuel prices, but this problem of half-help imports has been going on for years but has never been dealt with firmly. firm even though the data is clear in front of our eyes," he said.

That way, he added, the textile industry can freely strengthen its market share in the country. This means, he said, even though exports are disrupted, domestic consumption will be able to help.

"If cancel orders continue, economic pressure will get worse, and the government doesn't want to take firm action, it's not impossible that the trend of laying off employees will continue. And, those who were able to pay 80-90% wages for employees, gradually dropped," concluded Redma.