Termination of employment (PHK) is now starting to surface. If previously employers acknowledged that the layoffs were still just a 'ripple', now the waves are no longer unstoppable. As happened at the Kahatex factory, which is located in Sumedang, West Java. Secretary General of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta revealed, Kahatex is a textile and textile product (TPT) producer, a member of APSyFI. "Yes, APSyFI members. The sales are dragging (to trigger layoffs). Last week, 900 people were laid off. Kahatex only. We will continue to increase the wealth," said Redma, Thursday (20/10/2022).

Previously, Redma had warned of the potential for a wave of layoffs in the national textile industry. Moreover, he said, the government has also warned of dark conditions that threaten the economy in 2023 due to the 'storm' of global recession.

The signal, he said, can be seen from the reduction and cancellation of orders in a row. Especially by buyers in countries that are currently experiencing recession (technical) and hyperinflation such as the US and the European Union.

"This industry is facing a similar 'hit' as when the Covid-19 pandemic broke out. Indeed, in the first quarter of yesterday we were still growing. But then it fell again and there are no signs that it will recover soon. We hope that in the first quarter of 2023 we can there is a positive signal," said Redma.

Redma said the domestic textile industry was hit by the many cancellations and cuts in export orders. Meanwhile, the domestic market also did not help much because purchasing power was still weak.

There was a buildup of stock at the factory, forcing the company to cut production. As a result, he said, now there are many TPT companies in the country laying off their employees.

"APSyFI members have been laid off around 1500 people. According to information from the API (Indonesian Textile Association), around 43,000 people have been laid off," said Redma.

"For APSyFI members who have been informed of layoffs, only Kahatex. If SPV is full stop, employees are laid off, IBR only has 1 line, Indorama has stopped 2 lines. Others have less production by 30%," said Redma.

APSyFI member companies are fiber/rayon producers, which also supply their products to the export market. Among them, about 25% of production is sold to the export market.

"Meanwhile, the local market is very bad," said Redma.