As the Indonesian textile industry continues to lose export orders it is set to lay off more workers. The Indonesian textile sector gave marching orders to over 92000 workers last year as well.
The Indonesian textile industry faces several challenges, including global competition, fluctuating raw material prices, rising labor costs, and the need for technology upgrades. However, the industry continues to adapt and innovate to maintain its competitiveness in the global market. The recent slump in demand in the Western markets due to inflation has substantially reduced export orders.
Indonesian Textile Association (API) executive director Danang Girindrawardana said on Wednesday, approximately 12,000 workers from five textile companies would be impacted by the cost-cutting measures, which he expected would take place in the third quarter this year. The measures will come in three possible forms, namely layoff, contract termination, or shorter working hours, the latter resulting in lower monthly wages.
The textile industry in Indonesia plays a significant role in the country’s economy. It is one of the largest contributors to Indonesia’s manufacturing sector and provides employment opportunities for millions of people.
Indonesia is a major player in the global textile market and has a strong focus on exports. The industry exports a wide range of textile products, including garments, fabrics, yarns, and accessories, to various countries around the world.
Indonesia’s strategic location in Southeast Asia provides it with a competitive advantage in the textile industry. It has access to abundant raw materials like cotton, silk, and natural fibers, and it serves as a gateway to the growing markets in Asia-Pacific.
The textile industry in Indonesia has a well-developed supply chain that encompasses the entire production process. It includes cotton cultivation, yarn spinning, fabric weaving or knitting, dyeing and printing, and garment manufacturing. This integrated approach enables efficient production and reduces lead times.
There are several textile manufacturing clusters in Indonesia, with the most prominent ones located in West Java, Central Java, and East Java. These clusters provide a concentration of textile and garment factories, supporting industries, and skilled labor, creating economies of scale and fostering industry growth.
The Indonesian government has implemented policies and initiatives to support the growth of the textile industry. These include tax incentives, infrastructure development, trade facilitation, and vocational training programs to enhance the skills of the workforce.
The textile industry in Indonesia has been focusing on environmental and social compliance. Many companies have implemented sustainable practices, such as using eco-friendly materials, reducing water consumption, and ensuring fair labor conditions.
Overall, the textile industry in Indonesia is a vital sector that contributes significantly to the country’s economy, providing employment, driving exports, and showcasing Indonesia’s rich textile heritage to the world.
Indonesia to lay off more textile workers
