Chairman of the West Java Textile Product Entrepreneurs Association (PPPTJB) Yan Mei reminded that there would be dire consequences from the long-running war between Russia and Ukraine, including termination of employment (PHK) and the closure of textile garment factories. "The Ukraine war had a major impact, including rising inflation in America and Europe, rising logistics costs and falling orders for garments," said Yan Mei in Jakarta, Sunday. Citing a source from BPS, Yan Mei who was accompanied by Dessy Sulastri from the Wage Council of Bogor Regency, West Java, said that in West Java, there are 14 districts and cities that have provided data on the number of reductions or layoffs.
From a total of 124 existing companies, there are 64,165 workers who have become victims of layoffs, and 18 companies were forced to close because they could no longer survive in the midst of this difficult situation.
According to Yan Mei, garment companies are a labor-intensive sector with an average junior high school education level, so they are the group most vulnerable to the turmoil.
"To get out of this complicated problem, there are still steps that can be taken as long as all parties can sit down together to find a solution, especially regarding the issue of wages," he said.
Seeing these conditions, Yan Mei hopes that President Jokowi will immediately take quick actions to secure the danger of closing the garment industry as a result of the Ukraine war.
Bogor and Purwakarta regencies experience the highest vulnerability due to very high wages so that in a stressful situation of the Ukraine war, they will already lose their competitiveness.
This condition was acknowledged by Taufik Rachmat Garsadi from the Manpower and Transmigration Office of West Java Province, who revealed that at least 43 thousand textile and garment workers in six Cities/Regencies in West Java experienced Termination of Employment (PHK).
To overcome this condition, the Government of West Java also appealed to companies to adjust working hours to reduce wages to retain workers.
Meanwhile, PPPTJB spokesperson Sariat Arifia emphasized that the West Java Government's appeal was very good and therefore must be included in the legal umbrella both at the provincial and even national levels.
"Because of the economic situation, even for the garment industry, this is the toughest condition ever. This legal umbrella, which the garment industry and workers have been waiting for, regulates the relaxation of wages based on Pancasila, namely deliberation and consensus. So the garment industry players are wary of this finish soon and focus on dealing with business turbulence," said Sariat
Meanwhile, Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Maritime, Investment and Foreign Affairs, Shinta Kamdani, predicts that the labor-intensive sector will lay off workers due to a sharp decline in market demand.
Although Shinta did not predict when the wave of layoffs in the labor-intensive sector would occur, she believes that many companies are making efficiencies in many fields in order to maintain their survival.
