The Indonesian government has recently hiked the minimum wages of workers across the country and this has put pressure on the Indonesian textile and garment industry which is facing various challenges.
“Over the past year, the textile and apparel industry has experienced negative growth due to various factors,” the Chairman of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI) said.
Chairman of APSyFI, Redma Gita Wirawasta said that while the industry has been seeing growth contracting from the second quarter of 2022, it went into negative territory from the first quarter of 2023.
Redma stated that the increase in the minimum wages to be implemented from January 2024, would be a new burden along with existing challenges for the textile and clothing industry.
He stressed that enterprises in the sector who are already struggling might close down their companies once the new wage is implemented.
He added that workers are aware of the struggle of the companies they are working in, and so would like their jobs to be safe, rather than the company closing down under the burden of the new wage structure.
Redma urged the government of the industry to clamp down on illegal imports of textiles and garments as well as restrict the growing imports to help the industry to survive.