Currently, several factories operating in the textile, garment and footwear industries are experiencing a decline in orders. In fact, this has had an impact on several factories that have closed. However, according to the General Chairperson of the Indonesian Employers' Association (APINDO) Hariyadi Sukamdani, currently there are still many industries or factories that have not reported the steps to closing the factories, both to the Employers' Association and the Ministry of Manpower or the local Manpower Office. "There were reports that 1 textile factory and 1 shoe factory were closed, but we are troubled, sometimes when they close they never say that, you know, suddenly they close, it's hard not to have a report. It's different when you open a company, they are busy give an announcement, but if they close they quietly," said Haryadi in his office, Thursday (1/6/2023).
Hariyadi explained that the phenomenon of factory closures occurred primarily for export market-oriented industries. Meanwhile, demand for goods from several destination countries is experiencing a decline due to the economic slowdown and restrictions on trade routes.
"If this is the case, most (industry) exports are in labor-intensive industries, there are also restrictions from several countries so that demand falls, so they have difficulty selling," he continued.
However, according to him, until now, several industries apart from the garment, textile and footwear sectors are still performing quite well or there are no signs of weakening due to the impact of global economic conditions.
"Three weeks have emerged from textiles and from garments (laffoff). still good," he concluded.