PT Tuntex Garment Indonesia, a textile factory that produces the Puma brand, was forced to lay off 1,163 workers because they were unable to pay wages. This adds to the long record of termination of employment (PHK) in the textile and textile product (TPT) industry. General Chairperson of the Association of Indonesian Filament and Yarn Manufacturers (APSyFI) Redma Gita Wirawasta said that as many as 1,163 workers were laid off in early April. "In early April, PT Tuntex Garment went bankrupt and laid off around 1,163 of its employees," Redma on Wednesday (18/4/2023).
Redma further explained that the reason for the closure of this export-oriented factory was due to the large number of canceled orders.
According to him, PT Tuntex Garment Indonesia is export-oriented, but the factory stopped operating because the order was cancelled.
"Closed because many orders were cancelled," he added.
PT Tuntex is known to be a clothing manufacturer with the trade name Puma which is marketed overseas. However, since last year Tuntex has begun to lose its market share, since the outbreak of the Russian-Ukrainian war tore apart global economic conditions.
Now, it is reported that Tuntex has completely stopped operating. This condition does not only hit Tuntex, because since last year, the textile and TPT product industries have laid off tens of thousands of workers.
West Java Indonesian Young Entrepreneurs Association (Hipmi) Honorary Council Cecep Daryus said, the national textile industry is still in a critical period since the end of 2022, including in West Java.
"At the end of last year, there were many people who were sent home, if conditions like this continue, there will be more," he said.
The number of workers who have experienced termination of employment or layoffs in the textile industry sector, especially garments, continues to increase.
An additional 15,316 people were recorded as layoffs during the period October - November 2022. Quoting data from the Indonesian Employers' Association (Apindo), the total garment factory workers who lost their jobs as of early November 2022 reached 79,316 people from 111 companies.
"In fact, as many as 16 companies have closed their production operations. The total reduction in employees is 79,316 people," said Apindo Chairman Hariyadi Sukamdani in Jakarta, Wednesday (11/16/2022).
