Business actors in the Textile and Textile Product (TPT) sector asked the government to immediately take serious steps to save the industry. The drop in export orders, a flood of imported products domestically, and an increase in layoffs (PHK) threaten the survival of this industry if no action is taken immediately. According to the Chairperson of the Indonesian Filament Fiber and Yarn Association (APSyFI), Redma Gita Wirawasta, the TPT industry has experienced a decline in performance since the third quarter of 2022 until now. Sluggish export orders from major markets and increasing imports of domestic products have exacerbated the situation.
Redma said that many TPT factories were forced to lay off their jobs because they could not operate. In fact, the number of layoffs is estimated to be greater than the official report, which reached around 10,000 workers. The Association estimates that the wave of layoffs in the TPT industry could reach 500,000 people if no significant steps are taken.
Redma encouraged the government to form a task force (Satgas) focused on saving the national textile industry. Apart from that, the government also needs to stop importing textiles other than for export-oriented industrial raw materials, and take firm action against illegal imports of TPT products.
President of the Nusantara Trade Union Confederation (KSPN), Ristadi, revealed that six TPT factories were reported to be cutting workers by laying off employees. However, the number of workers laid off is estimated to be greater than the data reported because not all companies report publicly about their layoff plans.
In addition, there are several companies that object to being disclosed to the public regarding their plans to lay off employees because it involves banking trusts and the movement of their shares in the capital market.
"In the end, we cannot open the data as a whole," he said.
To deal with this situation, Ristadi asked the government to conduct a census of all TPT companies to understand the current conditions, including the number of employees who are still working, laid off, or laid off. He also encouraged employers to be more open in dialogue with workers to build trust and understanding about the company's difficult conditions.
The Director of the Textile, Leather and Footwear Industry at the Ministry of Industry, Adhie Rochmanto Pandiangan, explained that the growth of the TPT industry until the first quarter of 2023 decreased 0.07% (C to C) despite experiencing an increase from the third quarter of 2022. The TPT industry also faced pressure on the export sector with a decline in export value of 23.1%.
However, Adhie stated that confidence in the future of the TPT industry was still high. The investment value in this industry has also increased from year to year.
Business actors and the government are expected to work together in overcoming the challenges faced by the textile industry in order to maintain the continuity and growth of this sector.