Redma Gita Wirawasta, General Chairperson of the Indonesian Filament and Yarn Producers Association (APSyFI), revealed that several textile and clothing factories have stopped production and have closed their factories. This was due to the decline in demand for exports due to the weakening global economy. He explained, the phenomenon of factory closures had occurred since the fourth quarter of 2022, which continued until the first quarter of 2023. Even in the first quarter of this year, there were already 4 apparel factories which closed their factories.

"Factory closures have occurred in the fourth quarter (2022). Many factories have closed. If we look at the online platform, some have already been sold on the factory's online platform. That condition is still continuing, there are layoffs and laying off employees," he said , Wednesday (31/5/2023).

According to him, the condition of the export market is currently experiencing a decline in demand. On the one hand, the condition of the domestic market, which should be a cushion, is filled with imported products.

This caused the movement of domestic products in the domestic market to be limited, in the end many factories reduced their production capacity and closed their factories.

"About 3-4 factories closed in the first quarter, many of which reduced employees," he said.

Renda revealed that the locations where many factories were closed were in the areas of Bandung, Pekalongan, Solo, Banten, Tangerang and several other areas which were centers of apparel production.

"Almost in all textile areas (factories are closed). That's because they are oriented to the export market, but market conditions are bad, so they order a little. On the other hand, the domestic market is flooded with imported products, so we have no alternative market. Foreign markets difficult but flooded with imported products, so we can't sell everywhere," he said.

Meanwhile, Renda admitted that he had yet to receive data on the number of employees affected by the factory closure. But the latest data released by the Ministry of Industry (Kemenperin), in the fourth quarter of 2022, 100,000 employees were laid off.

"In the first quarter it hasn't been released, but we got information, there were 1,200 layoffs, there were 5,000 layoffs in January, but the 2023 update isn't complete yet," he said.