The Association of Fiber and Filament Yarn Producers (Apsyfi) revealed that the condition of the domestic textile industry is on the brink of disaster. Now, domestic market-oriented companies are most threatened with bankruptcy. APSyFI Chairperson Redma Wirawasta said, in the third and fourth quarters of 2022, companies aiming for the export market were disrupted. This is because many countries have closed their doors to exports due to declining economic conditions. However, in the first quarter of 2023, the replacement of companies with domestic market goals is threatened.

"In the third and fourth quarters of last year we still said the condition of the fiber and yarn textile industry was a yellow light because its growth had slowed down. But, if I can now say that it is an orange light, that means it is almost a red light," Redma said through his statement, quoted Thursday (25/5/2023).

The impact, he continued, was unstoppable layoffs. Middle-class textile companies that cannot maintain their cash flow inevitably have to close their factories.

"Many middle-class companies where there are around 1,000-3,000 workers have already closed. The big companies might be able to survive because of their strong cash flow, so they can still be adjusted by reducing production and continuing to survive. But if companies whose cash flow is not strong, the choice is to close," said Redma.

Redma revealed that the trigger for the current decline in the textile industry was the rise of imported clothes for the domestic market, both new and used. In fact, the target of 70 percent of the national textile entrepreneurs is the domestic market.

Therefore, his party fully supports the government's steps to destroy used imported goods in the country. Because, if this is not the case, the local textile industry will get worse.

"So now it is the domestic market that is actually the focus of the textile industry players and also textile products," concluded Redma.