In recent times, the condition of the Majalaya Textile Small and Medium Industry (IKM) has experienced a decline in turnover. The flood of imported products is indicated to be the cause of the decline in turnover. Agus Ruslan, one of the Majalaya textile IKM players, said the condition of the textile and textile product business is currently experiencing a sluggishness caused by a number of things, both a flood of imported products to the Covid-19 pandemic. "Overall, the Majalaya textile SMI is currently experiencing a decline. Orders are only 25% coming in from usual," said Agus, Sunday, November 13, 2022.
He gave an example, in his 6 textile factories, most of them have almost stopped operating due to a lack of incoming weaving orders.
"The machine at the factory is currently empty (not operating). It's not that there are no orders, it's just not as fast as usual," he said.
This condition occurs not only in his factory, but in other factories that are included in the IKM scale.
In fact, a number of factories in Paseh District, which borders Majalaya, have stopped operating because they did not receive orders from clients.
"The condition is currently cooling down. Indeed, it does not involve layoffs, only laying off workers," he said.
According to Agus, this condition occurred due to a number of economic problems, both local and global. Locally, Indonesia's current economic condition is not fully stable after the Covid-19 pandemic, which has resulted in a decline in demand for textile products.
Today's people prefer to buy basic needs compared to buying clothing which has resulted in a decrease in orders for textile products such as garments and others.
With the decline in the textile product business, it has had a major impact on upstream textile products such as weaving and others.
"Currently imports of finished textile products are flooding the Indonesian market. This also has an impact on us," he said.
The exchange rate of the dollar against the rupiah is also an additional problem, because some of the raw materials for textiles are obtained from abroad, so that the weakening of the rupiah makes the prices of basic commodities higher.
He hopes that the government will immediately take concrete steps to address the problems faced by textile businesses in Indonesia. So that textile SMEs can continue to survive amid the onslaught of imported products.