The Indonesian textile industry is facing increasing pressure. By the end of 2025, five textile factories in the upstream sector had ceased operations and closed their businesses completely. This situation has directly impacted layoffs estimated at around 3,000 workers. This situation is considered a clear sign of the ongoing deindustrialization process in the country.
The Secretary General of the Indonesian Filament Fiber & Yarn Producers Association (APSyFI), Farhan Aqil Syauqi, stated that the main cause of this wave of closures is serious losses due to continued weakening domestic product sales. The flood of imported products at dumping prices, particularly fabric and yarn, has made it increasingly difficult for local companies to compete. In fact, six other factories are now only able to operate at less than 50% capacity, with some having implemented an on-off system due to unstable production conditions.
Farhan emphasized that if the government does not take concrete and transparent steps to control imports, the wave of company closures is predicted to continue into 2026. He believes the government should be able to monitor and take firm action against imports recorded through the customs system, particularly regarding the distribution of import quotas, which remains unclear. This uncertainty prevents industry players from establishing long-term production plans.
Nevertheless, Farhan expressed his appreciation for the Minister of Finance's commitment to tightening oversight of illegal imports, including efforts to crack down on thrifting imports. He hopes the investigation will uncover fraudulent practices that have been detrimental to the state and the domestic textile industry.
The five companies that have officially closed production in the textile sector are PT Polychem Indonesia in Karawang and Tangerang, PT Asia Pacific Fibers in Karawang, PT Rayon Utama Makmur, part of the Sritex Group, and PT Susilia Indah Synthetics Fiber Industries (Sulindafin) in Tangerang. Given these conditions, the future of the national textile industry requires serious attention and stronger protection policies to prevent further decline amidst global competition.