Based on reports from IKATSI members in various regions, the layoffs that occur are due to the fact that the stock of production in the company has not been able to sell for more than 3 months, so many companies have their working capital suspended and cannot buy raw materials. "Imported goods flood the market, local producers cannot sell, there are no orders," Harno explained.
IKATSI asked the government to immediately intervene to save the industry that has a role as a labor absorber and net foreign exchange earner for the country. "There are around 3 million workers in the textile sector who must be rescued immediately," he stressed.
Deputy Secretary of the West Java Indonesian Textile Association (API), Rizal Tanzil confirmed that there was indeed a wave of layoffs in the West Java textile industry, especially in the Greater Bandung area. "Reports from our members as of last July, a total of 36 thousand employees have been laid off" he explained.
Dismissal of the workforce is the impact of the company's efforts to survive by reducing production. "At present there are many companies whose utilization rates are only 30% to 40%, even some have stopped production entirely, especially IKM," he added.
API West Java asks the government to immediately take rescue actions to maintain the existence of the TPT sector in West Java.
Responding to these conditions, the Association of Indonesian Filament Fibers and Yarn Producers (APSyFI) asked the government not to grant import permits either through API-U or API-P. national textile industry. "Import licenses are closed first, except for the import of raw materials for export purposes through the Bonded Zone (KB) and the Ease of Importation of Export Purposes (KITE)," Redma said.
Redma explained that the deterioration in the condition of the textile industry, especially in the fabric production sector, had an impact on weakening demand for yarn and fiber. "Because of this import of the TPT industry from upstream to downstream, it has fallen, only export-oriented garments are still growing," Redma explained.
Redma called for serious attention from the government to immediately address this issue. "The value of domestic sales from upstream to downstream per year on average reaches Rp.450 trillion and continues to grow, if this value is filled by imported goods, how much foreign exchange is going away," he concluded.