Chairman of the Indonesian Textile Association (API) Ade Sudrajat Usman said, at least nine companies had gone bankrupt because they were unable to compete with imported products.
"More in the middle or intermediate sectors, as in spinning there is one, there is a lot of weaving and knitting," Ade said in the Textile Media Gathering event at Menara Kadin, yesterday. There are 2,000 workers threatened to lose their jobs.
Meanwhile, on the previous occasion the API West Java had said that the textile industry had laid off a total of 36,000 employees since 2018. The low competitiveness of the domestic textile industry was partly due to the long lead time of the textile and textile product industries.
Recognized by the Clothing Apparel Group's CEO Marimutu Maniwanen, the lead time of the Indonesian textile industry is 120 days. Meanwhile, the lead time for fast fashion products is only around 60 days. He further explained, the lead time was too long due to the majority of Indonesia's raw material in the textile industry.
"If we import raw materials, it is very difficult to achieve it, at most 90 days. To reach 60 days we must have products that are entirely from within the country," he said at the Textile Media Gathering at Menara Kadin, yesterday.
In addition, what is slowing down the lead time of the textile industry is that regulations in the upstream sector are less flexible, such as inexpensive energy. If it is not immediately addressed, it is not impossible that investment opportunities will instead shift to other countries such as Cambodia, Myanmar and Ethiopia.
For information, lead time is the time needed during the process of making garments to its distribution.