Association reveals list of 60 collapsed textile companies

1 month ago 44

December 20, 2024 | 09:07 am

TEMPO.CO, Jakarta - Chairman of the Indonesian Fiber and Filament Yarn Producers Association (Apsyfi) Redma Gita Wirawasta, said over the past two years, as many as 60 textile companies in the country have collapsed.

Based on his data, Redma said as many as 34 companies closed and stopped operating, the rest made efficiency in the form of reducing labor or termination of employment (PHK), laying off workers, and relocation.

"This has resulted in around 250 thousand employees experiencing layoffs," he said met by Tempo in the South Jakarta area Thursday, December 19, 2024.

Redma said this number has the potential to continue to increase because not all textile companies immediately report to the association when they close. They will usually only report when their obligations to their workers have been fulfilled.

Redma said the collapse of these textile companies was caused by the surge in apparel imports into the domestic market. According to him, the import relaxation policy issued by the government through the Minister of Trade Regulation No. 8 of 2024 had a significant impact on the domestic textile industry.

"This has worsened the condition of the textile industry in Indonesia, which has actually been deindustrialized for the past 10 years," he said.

Redma added that this condition also has an impact on related sectors, such as the petrochemical industry and the production of Purified Terephthalic Acid (PTA), which is the main raw material for textiles.

The textile industry is an upstream-to-downstream industry that involves many parties, so the collapse of the textile industry will affect a number of other related industries. "This reduces industrial utilization and impacts other sectors, such as electricity and logistics," said Redma.

OYUK IVANI S | ERWIN PRIMA

Editor's Choice: Govt Responds to iPhone 16 Pre-order Rumors in Indonesia

Click here to get the latest news updates from Tempo on Google News

Boeing to Lay off Over 2,500 Workers in U.S. as Part of Sweeping Cuts

30 hari lalu

Boeing to Lay off Over 2,500 Workers in U.S. as Part of Sweeping Cuts

Boeing carries out a massive layoff. In the U.S., 2,500 Boeing employees are terminated.

Three Government Proposals to Rescue Sritex from Bankruptcy

35 hari lalu

Three Government Proposals to Rescue Sritex from Bankruptcy

The government is working to rescue PT Sri Rejeki Isman Tbk or Sritex from a massive wave of layoffs due to the company's liquidation process.

Two Former Susi Air Employees Lodge Layoff Lawsuits at Central Jakarta Court

35 hari lalu

Two Former Susi Air Employees Lodge Layoff Lawsuits at Central Jakarta Court

Two former Susi Air lodged layoff lawsuits at the Industrial Relations Court for alleged layoff without pay since September 2017.

Ministry of Manpower Says Jakarta has the Highest Number of Layoffs in Indonesia

48 hari lalu

Ministry of Manpower Says Jakarta has the Highest Number of Layoffs in Indonesia

The highest number of layoffs currently is in Jakarta. This surpasses Central Java, which was previously the province with the highest number of layoffs in Indonesia.

Bukalapak Plans to Lay Off Workers Next Year

49 hari lalu

Bukalapak Plans to Lay Off Workers Next Year

Bukalapak has re-evaluated the prospects of several business segments and decided to restructure to achieve the company's strategic goals.

Apindo Urges Govt to Revive PPh 21 DTP to Save Textile Industry

49 hari lalu

Apindo Urges Govt to Revive PPh 21 DTP to Save Textile Industry

Apindo proposes that the government reinstates the Income Tax 21 State-Provided (PPh 21 DTP) incentives to save the labor-intensive industry currently experiencing a contraction.

Ministry of Industry Outlines Steps to Save Sritex

51 hari lalu