The domestic textile and textile products (TPT) industry can breathe a sigh of relief with the positive projections presented by the increase in the Indonesian Manufacturing Purchasing Manager's Index (PMI). Data released by S&P Global for March 2024 shows that the Indonesian manufacturing industry is experiencing a significant expansion phase, with the PMI index reaching the level of 54.2, which is the highest position in the last 2.5 years.
This increasingly stretched performance not only has an impact on the manufacturing industry in general, but has also spread to the domestic textile factory sector, especially in the upstream industry. Since the fourth quarter of 2022, the rampant wave of layoffs (PHK) in the textile sector has begun to show signs of abating. The layoff figure of 1 million workers, as recorded by the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), is starting to show a decline.
The global economic slowdown and the influx of imported TPT goods, both legally and illegally, have been the main triggers for this wave of layoffs. However, with the current positive trend, the General Chair of APSyFI, Redma Gita Wirawasta, is optimistic that the wave of layoffs can stop soon after Eid.
However, Redma also emphasized that the termination of layoffs would only occur if conditions in the textile industry became more favorable. Controlling the flow of imported goods is the main key in securing the performance of the domestic textile industry. In this case, the implementation of Minister of Trade Regulation Number 3/2024 and Minister of Industry Regulation Number 5/2024 is crucial.
Strict regulations on imports of textile goods will help the domestic textile industry to develop better. Redma emphasized that all stakeholders in the national textile industry fully support the implementation of these regulations without any changes or delays.
Redma also invited all parties to support domestic products, responding to protests raised by the Indonesian Global Brand Retail Entrepreneurs Association (APREGINDO). He emphasized the importance of subsidizing imports with quality and classy local products.
With these positive steps, the domestic textile industry has new hope of getting out of the layoff crisis that has hit. Full support from the government, industry stakeholders and domestic consumers will be the key to success in strengthening the domestic textile industry and creating better sustainability for the Indonesian economy.