The textile and textile products (TPT) business is currently facing a difficult period. One of the proofs is the layoffs experienced by the Kahatex textile factory in Sumedang, West Java as many as 900 people. "Actually, after Covid-19, the textile business has improved and is back to normal. However, starting in the third quarter of 2022, the business has dropped a lot," said Secretary General of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta, Friday (21/10). He said that at least textile companies had lost around 10% of their workforce until the third quarter of 2022. Based on data during the pandemic to the current recession, Redma noted that demand for garments had decreased by 80%. This figure is very high and worrying about the future of the textile garment industry in Indonesia.

By looking at this, he assesses, until the middle of next year, the textile business will continue to collapse if the government does not take it seriously.

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

As a result, there was a buildup of stock at the factory, forcing the company to cut production. Now, many textile companies in the country are laying off their employees.

Based on information from the API (Indonesian Textile Association), the number of textile industry workers who have been laid off is around 43,000 people.

"Economic problems in the United States and the European Union have reduced people's purchasing power, so their consumption has dropped drastically. On the other hand, in the third quarter, the domestic market also began to be flooded with imported goods in large quantities for merchant importers even though domestic consumption was still quite stable, but filled with many imported goods," he said again.

The biggest sales of textile exports to European and American countries. However, as countries in the region are slowing down their economies, demand from there is declining.

Under these circumstances, Redma projects that layoffs and layoffs of employees will continue. This had to be done because many industries had to survive by doing efficiency.

Redma added that the domestic market will still be the only hope for national textile products. Thus, his party considers that there is a need for firmness and a common vision from all authorities so that policies are in favor of local products. This includes aligning the vision of all levels of the bureaucracy from echelon 1 to 3.

Apsyfi also sees that there are still many bureaucratic elements with an interest in this import business, so the President's instructions to use local products have never been achieved.

"One of the main ways is to maximize sales in the local domestic market," said Redma.