The current condition of the Indonesian textile and textile product (TPT) industry is described as “falling down the stairs.” Weakening export demand and a domestic market filled with imported products have made it increasingly difficult for the TPT industry to survive.
The General Chairperson of the Indonesian Filament Fiber & Yarn Producers Association (APSyFI), Redma Gita Wirawasta, explained that challenges in the export market have caused many industry players to shift their hopes to the local market. However, illegal imports that enter without strict control from customs have made it difficult for the local industry to gain domestic market share. As a result, the factory capacity utilization rate has decreased to only 45% this year.
The impact of this weak demand has caused many textile companies to face severe financial pressure. This is marked by a decrease in production which has led to a reduction in the workforce. The wave of layoffs (PHK) has also continued, making it difficult for companies to survive. For example, PT Primissima (Persero), a leading state-owned textile company, recently laid off 402 of its workers. PT Sri Rejeki Isman Tbk (Sritex), one of the largest textile companies in Indonesia, was even declared bankrupt by the Semarang Commercial Court due to debt burdens exceeding the company's assets.
This mass layoff also targeted other textile companies, such as PT Pandanarum Kenangan Textil (Panamtex) in Pekalongan which specializes in the production of woven sarongs. Although still operating, the bankruptcy status has left the fate of 510 Panamtex workers in limbo. The company is currently filing an appeal to continue its operations.
According to data from the Ministry of Manpower, the manufacturing sector was the most affected, with more than 24,000 layoffs from January to September 2024. The total number of workers who lost their jobs increased from the previous year, with an increase of more than 10,000 workers compared to the same period last year.
From this condition, it is clear that the TPT industry in Indonesia currently requires strategic steps and strong support from various parties to overcome market pressures and maintain the sustainability of the industry, which also means the sustainability of jobs for thousands of workers in Indonesia.