The wave of layoffs (PHK) in the country's labor-intensive industries has apparently not ended. After massive layoffs at the footwear (shoes) factory, now thousands of workers have also become victims of the garment factory layoffs. Not just layoffs, related companies are also reported to have had to completely close their factories because they could no longer survive and continue production. "Currently there are 3 garment factories that are in negotiations because the companies have difficulty paying severance pay. In Bandung, Solo, Pekalongan," said Chairman of the Indonesian Filament Fiber and Yarn Association (APSyFi) Redma Gita Wirawasta, Tuesday (30/5/2023).

"However, those in Bandung are laying off houses. Those in Solo and Pekalongan are total layoffs, meaning the factories are closed. The number could be in the thousands. And these are only the reported layoffs, there are those that are not reported, the number could also be in the thousands," he added.

It's just that, Redma is still reluctant to reveal the details of the company that will lay off.

"I can't say the name of the company because it's in mediation. The Labor Union is directly involved," he said.

Redma said that the conditions in the textile industry and textile products in the country are still apprehensive.

"The export and domestic orientations are all in a hurry, upstream to downstream. There is no sign of a recovery trend, in fact conditions have worsened compared to the fourth quarter of 2022. In this first quarter, growth was severe, negative 0.7%," said Redma.

"Utilization now is on average only 55%. So, don't think that factories are closed due to relocation. If we relocate, capacity will increase. However, this is the condition where our capacity is reduced," Redma said.

A wave of layoffs in the national TPT and footwear industries has been going on since the final quarter of 2022. Following an economic slowdown in export destination markets such as the US and Europe, this has triggered delays and reductions in orders.