The Indonesian Employers' Association (Apindo) estimates that a wave of Termination of Employment (PHK) in labor-intensive footwear industries will still occur until the end of this year. This is the impact of the weakening global economy, which causes a decrease in demand for footwear. "I think this year at least it will continue, or layoffs will still be visible, hopefully next year we can start to recover," said Apindo chairman Shinta Widjaja Kamdani in Jakarta, Thursday (15/6/2023). He explained that the current global economic conditions have become a nightmare for entrepreneurs in the textile and textile product (TPT) industry. The reason is, many whose income has decreased. Because of that, according to him, Apindo management and the government should pay more attention to this matter so that they can work together to return conditions to normal so that there will be no more layoffs.

"Regarding this demand is something that should be our concern, why? Because our labor-intensive industry is one of our goals to be able to export," said Shinta.

According to him, efforts that can be made to reduce the number of layoffs in the footwear industry, one of which is by looking for new markets for export intensification. However, on the other hand, the quality of the workforce must also be improved. Also read: The Ministry of Manpower Allows Layoffs for Perpetrators of Sexual Harassment in the Workplace

"Because this problem is not only related to demand, so there must be an increase in skills for the workforce. Therefore, labor-intensive industries must start paying attention from the work perspective," said Shinta.

In addition, he added, the rise of layoffs in the footwear industry was also due to the rise of legally imported goods, as well as footwear production machines in Indonesia which were damaged and old. This is what slows the production of footwear.

Meanwhile, the Confederation of National Trade Unions (KSPN) said that to date, thousands of employees in the footwear and textile industries have been affected by layoffs from the fourth quarter of 2022 to the first quarter of 2023.

Based on KSPN records, the majority of companies that took layoffs were in West Java, such as Tangerang and Bandung, and Central Java, such as Solo Raya and Pekalongan.

General Chairman of the Confederation of National Trade Unions (KSPN) Rustadi explained, in May, his party handled layoff cases of 3,000 employees from companies located in Pekalongan, Central Java, namely PT Kaban and PT Pismatex.

Then there were PT Agungtex Group and PT Duniatex which laid off their 5,000 employees.

"In addition, layoffs also occurred in the Bandung area, until the first quarter of 2023 KSPN handled layoff complaints from PT Adetex which laid off hundreds of employees. In fact, according to Rustadi, the company had stopped production 3 years ago," he said, not long ago.