Encompassed By A Number Of Challenges, Waves Of Layoffs Still Hit The National Textile Industry

The fate of the Indonesian textile and textile products (TPT) industry must again face a sad fate. This is considering that a wave of layoffs (PHK) of employees will still occur in the industrial sector during 2023.

Chairman of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI) Redma Gita Wirawasta said that the trend of layoffs of employees in the TPT industry has not shown any signs of ending. Most recently, the TPT producer, PT ACP Purwakarta, had to lay off around 500 employees because it stopped operating as of July 18, 2023.

APSyFI notes, it is estimated that around 50,000 TPT industry employees will experience layoffs in semester I-2023. This number is indeed not as many as the layoffs that occurred in semester II-2022, namely around 100,000 employees. However, this still indicates that the national textile industry is still in a sluggish condition.

The Employment Social Security Administration Agency (BPJS) or BP Jamsostek has also been noted to have paid Job Loss Benefits (JKP) for 26,690 participants with a total value of IDR 159.1 billion during January-June 2023. Meanwhile, in February-December 2022, BP Jamsostek has paid JKP for 10,141 participants with a value of IDR 44.4 billion.

Redma said that the local TPT industry, both upstream and downstream, had difficulty getting up because of imports

illegal TPT products are still flooding the market without any significant action from the government. It's no doubt that the wave of layoffs has become difficult to stem when the performance of national TPT producers has declined.

“Many coordination meetings have been held, but this condition has been going on for almost a year. These illegally imported goods still dominate the domestic market," said Redma, Wednesday (26/7).