The threat of a recession is getting real. A number of textile industries in the country one by one began to collapse. Of the 15 textile issuers listed on the IDX, almost all of them experienced a decline in sales. A number of factors are the trigger. Among them, the value of the rupiah is getting weaker against the United States (US) dollar. Research & Consulting Manager Infovesta Utama Nicodimus Kristiantoro assesses that sluggish demand has reduced the sales of listed companies. "This is especially experienced by issuers whose sales are mostly to the export market," Nico said Monday (7/11).

Nico gave an example of the sale of PT Pan Brothers Tbk (PBRX). As of September 2022, PBRX pocketed sales of US$ 501.96 million, down 1.15% on an annual basis.

As a result, in the third quarter of 2022, PBRX's net profit fell to US$ 12 million or equivalent to Rp 202 billion compared to the same period in 2021 of US$ 19 million.

In the third quarter of 2022, HDTX's revenue was only Rp. 5.90 billion, down 34.12% from Rp. 8.95 billion in the third quarter of 2021.

After all, not all red textile issuers' performance report cards. An example is PT Ever Shine Tex Tbk (ESTI).

In these nine months, ESTI's sales still grew 4.37% year-on-year to US$ 22.67 million.

The increase in sales was also achieved by PT Indo-Rama Synthetics Tbk (INDR). As of September 2022, INDR sales were US$ 756.50 million, up 18.44 percent year-on-year.

Head of Research at NH Korindo Sekuritas, Liza Camelia, said that the difficulties in the textile sector came from the dependence on transactions using US dollars.

"It is difficult for textile issuers to reduce their dependence on the US dollar," said Liza.

So when the US dollar strengthens, the income of textile issuers is also depressed.

The reason is, imported textile raw materials use the US dollar exchange rate. On the other hand, market demand, which was expected to offset the burden, was sluggish.