The wave of layoffs (PHK) continues to hit the Indonesian textile and footwear industry. Previously, the Confederation of Nusantara Trade Unions (KSPN) said that a number of textile and footwear factories had laid off workers or laid off their employees. The factories are located in West Java, Central Java and Banten. For example, PT Duniatex is reported to have laid off 3,000 of its employees. Then, there is the Agungtex Group which laid off around 2,000 employees, PT Kabana which laid off 1,700 employees, PT Pulaumas which laid off 800 employees, and several other companies.

Chairman of the Association of Fiber and Filament Yarn Producers (APSyFI) Redma Gita Wirawasta said, based on APSyFI findings, there was a reduction in employees in the textile and textile products (TPT) industry of around 150,000, either in the form of layoffs or laid off employees, during the third quarter of 2022 to first quarter of 2023. The number of TPT industry employees who were laid off could have been much larger because not all companies reported their business conditions.

Currently, uncertainty still surrounds the textile and footwear industries because the export market has yet to recover. On the other hand, the domestic market is still filled with imported goods, so stocks of textile and footwear products in warehouses are still high.

"That way, the company will again reduce production and be forced to rationalize employees," he said, Wednesday (7/6).

According to Redma, layoffs are the last option taken by textile and footwear companies. As much as possible, the company just needs to rationalize it by temporarily laying off its employees, so that these employees can be recruited again when the company's business conditions improve.

"However, for companies that are really in trouble and are forced to layoffs, they must fulfill the rights of their employees as much as possible," he explained.

Until now, the domestic market is still flooded with imported textile and footwear products, both legal and illegal products. In fact, the domestic market opportunities should be maximized by national textile manufacturers when export demand is sluggish.

APSyFI and related associations have also coordinated with the Coordinating Ministry for the Economy to stem TPT imports in the country, so that the domestic TPT industry can recover.

"As long as the domestic market is filled with imported goods, we think the phenomenon of layoffs will continue," said Redma.

Deputy Chairman of the Indonesian Textile Association (API) Ian Syarief agreed, the rise of imported products has made national TPT producers helpless. In fact, efforts to eradicate used TPT imported products have been carried out by the government.

However, the overall TPT import rate is still difficult to stem. This is because the demand for products in developed countries is still minimal, so that a number of other TPT producing countries have instead diverted their products to Indonesia.

"There is a threat of imports from Vietnam, Bangladesh and China entering Indonesia," said Ian, today.