Jakarta, IO – Indonesian Employers Association (Apindo) deputy chair Shinta Widjaja Kamdani said there will be three sectors impacted by mass layoffs in 2023, namely the export-oriented and labour-intensive textiles, footwear and furniture industries. According to her, the significant decline in demand from the global market is the main cause, reported Katadata, Tuesday (21/2).
Shinta predicted the sectors will start laying off their workers this year. Workers Social Security Agency (BPJS Ketenagakerjaan) noted that 919,071 workers have been laid off based on the withdrawal rate of retirement savings (JHT) in the January-November 2022 period.
Global demand for Textiles and Apparel Products (TPT) and footwear have started to wane since the beginning of H2-2022. “In the textile and footwear industry, there has been 30 to 50 percent decline in orders at the end of 2022 until Q1-2023,” he pointed out.
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As a results, companies in that sector have been forced to significantly cut production, reduce working hours and lay off their workers. (un)