The global crisis as a result of the impact of the Russian-Ukrainian war began to be felt by the textile industry in Indonesia. Coordinator of Industrial Relations of the Indonesian Textile Association (API) Andrew Purnama said, Indonesia's textile exports dropped dramatically after the Russia-Ukraine war. "Indonesia's export market is falling again, because there is an ongoing war. So indeed, when the war continues it has an impact on the economic crisis. That's why now the demand for domestic exports is falling," Andrew said after a dialogue with the Coordinating Minister for Human Development and Culture (Menko PMK ) Muhadjir Effendy at PT Kahatex, Sumedang, West Java, Wednesday (11/16/2022).
Andrew said, the loss of this export market, made the condition of textile companies in Indonesia over stock. Because on the other hand, the domestic market is not available, because it is flooded with imported products that cannot be stopped.
"Thus, this condition causes domestic textile products to go nowhere, the impact of which is that textile companies in Indonesia experience over stock," said Adrew.
This also causes textile companies to take policies to lay off their employees.
"So, in just 16 days, there have been 85,951 employees throughout Indonesia who have been laid off by the company. For West Java alone, there have been 37,000 reductions," said Andrew.
Andrew said, the status of being laid off, some were only temporary, and some continued with the termination of the work contract. "So the threat of layoffs is real at this time, as has been conveyed by our fellow textile workers in Indonesia," said Andrew. Andrew said that it is difficult to predict when the textile industry in Indonesia will be able to recover from the current crisis caused by the war. For him, the recession has begun. It is also impossible to predict when this crisis will improve, as before.
"Previously, we could predict how long the market would slow down, for example in the next 6 months, but after 6 months the market was excited again. Now for the current global crisis, we can't predict it," said Andrew.
Even so, said Adrew, the current conditions should not make all parties panic.
"Current conditions don't have to make us panic, but we must remain vigilant. We must remain calm, as long as the government intervenes quickly. One way is to issue regulations related to the local market. That is, the local market is for local companies, so that our textile companies can keep surviving in these difficult times," said Andrew.
If the local market exists, the export market that is currently missing will be replaced by the availability of the local market. So that textile companies in the country can survive.
"Apart from that, we beg the government to immediately suppress imports, especially the flood of illegal imports of used clothes. We ask the government to deal with this immediately. We have also tried to ask the Ministry," said Andrew.
Andrew said, the contribution of illegal imports of used goods has greatly contributed to the textile industry in Indonesia.
"This illegal import of used goods has really hurt us. We have been hit by a pandemic and we can still survive, now it is very overwhelming to deal with this illegal import," he said.
"We love the textile industry, because if this industry doesn't exist, it's a labor-intensive industry, so it's inconceivable if this industry can't survive later," concluded Andrew.