The textile and textile product (TPT) industry is still facing tough challenges amidst economic uncertainty. Previously, the textile industry was worried because of the termination of employment (PHK) experienced by the Kahatex textile factory in Sumedang, West Java, as many as 900 employees. The Indonesian Textile Association (API) has also stated that around 43,000 textile industry employees have been laid off since the Covid-19 pandemic emerged. Chairman of the Indonesian Textile Association Jemmy Kartiwa Sastraatmaja said the phenomenon of layoffs that occurred in the domestic textile industry could not be separated from the impact of the weakening global textile market.

This is because countries such as the United States and in the European region are experiencing a slowdown in the economy so that export demand there has also experienced a fairly deep decline.

Domestically, the performance of the textile sector has also begun to slow down. Apart from the result of the unstable purchasing power of the people, it is also due to the flood of imported products into the domestic market.

"This has an impact on the disruption of the utility of the textile industry production which resulted in a reduction in employee working hours from the initial 7 working days a week to only 5 working days," said Jemmy, Friday (28/10).

API itself estimates that the performance of the textile industry in 2023 will be weaker than the conditions until the fourth quarter of this year. The threat of a global recession has also haunted the domestic textile industry. "So, we have to prepare ourselves to face these challenges," he said.

Jemmy also considered that for now the textile industry players can only hope for more income from the domestic market amidst the lack of improvement in export demand. Therefore, TPT entrepreneurs need more strict supervision and control of imports of various TPT products from the government.

Chairman of the Trade Division of the Indonesian Employers' Association (Apindo) Benny Soetrisno added that the prospect of the national textile industry next year depends on several factors. For example, how capable the domestic market is to prevent the entry of illegal and contraband TPT products.

"The easing of inflation in export destination countries will also determine the fate of the Indonesian textile industry," he added, Friday (28/10).

Then, Apindo hopes that the government can strengthen policies in preventing the import of illegal textile products, including applying trade remedies or protecting domestic industries from the losses of unhealthy trade practices. Apindo also hopes that there will be facilities related to restructuring policies for textile industry players who are facing financial problems.