Textile smuggling has again become the main focus of President Prabowo Subianto, who believes that this activity has a major impact on the national textile industry. In his speech at the National Development Planning Conference (Musrenbangnas) for the 2025–2029 National Medium-Term Development Plan (RPJMN) in Jakarta, December 30, 2024, Prabowo emphasized the importance of stopping leaks and smuggling that have harmed the industry and hundreds of thousands of Indonesian workers.
The Impact of Textile Smuggling on Layoffs
According to the Deputy Minister of Manpower (Wamenaker), Immanuel Ebenezer Gerungan, Prabowo's warning is an important signal for all parties. He emphasized that textile smuggling is closely related to national employment, where the spike in Layoffs (PHK) is one of the real impacts.
"This is a warning bell for all parties that textile smuggling has a direct impact on workers and the national industry," said Noel, his nickname.
Complaints about this condition were previously submitted by the Indonesian Filament Fiber and Yarn Producers Association (APSyFI). In the last two years, according to APSyFI, around 60 factories are threatened with closure due to illegal imports. As a result, around 250 thousand workers have been laid off. Noel also urged that this data be immediately verified and responded to with concrete steps by the relevant agencies.
Threat of Deindustrialization
Illegal textile imports have not only hit the textile and textile product (TPT) industry, but have also weakened the petrochemical sector as the main provider of textile raw materials. APSyFI assessed that this situation has accelerated the rate of deindustrialization in Indonesia.
Noel highlighted that the domino effect of this smuggling has been seen in the weakening of the Purified Terephthalic Acid (PTA) industry, the main raw material for textiles. If left unchecked, this could hamper industrialization efforts which are one of the national priorities.
Role of Legal Apparatus in Handling Smuggling
President Prabowo stated that eradicating smuggling requires an active role from legal apparatus. He is committed to reviewing the strengthening of the capacity of legal apparatus to prevent leaks and smuggling that have occurred so far.
"It is not only the Ministry of Manpower that is responsible. All government agencies must be involved. Unfortunately, the Ministry of Manpower is often only the party that cleans up problems downstream," Prabowo emphasized.
Hopes and Solutions for the Future
To overcome this problem, cross-agency collaboration and firm action against smuggling perpetrators are needed. In addition, data transparency and law enforcement must be a priority. With this step, it is hoped that the textile industry and its workers can regain justice and competitiveness in the national and global markets.
Textile smuggling is a major challenge that requires a joint solution. Firm steps taken now will not only save the textile industry but also maintain the sustainability of employment in Indonesia.