Worker job redundancies continued in the Indonesian textile and apparel sector when Semarang city, based on two textile factories, laid off thousands of workers in December.
According to the Confederation of Indonesian Workers’ Unions (KSPN), around 12,000 workers lost their jobs in the country’s textile and garment industry in 2023.
This data includes only those workers who are members of KSPN and does not include workers who are not its members.
KSPN President Ristadi emphasized that the main factor in this wave of layoffs was the invasion of imported products, which badly damaged the domestic industry.
“On the other hand, export-oriented companies are also affected by a slowdown in demand in the global market, which is putting pressure on the overall economy,” he added.
Ristadi underlined the importance of concrete and immediate steps from the government in helping labor-intensive industries like the textile and garment sectors.
He urged the Indonesian government to control and restrict growing legal and illegal imports of textiles and garments.
Ristadi also suggested financial assistance for modernizing textile machinery and implementing friendlier banking and tax policies.
He also recommended the government assist the industry in searching for non-traditional markets so that the export momentum does not get reduced.
“With the right support, it is hoped that this industry can recover and make a greater contribution to Indonesia’s economic growth,” the union leader opined.