Tuesday, July 23, 2024 | 19:47 WIB

Textile factories prepare to retrench workers amid rising economic uncertainty

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Jakarta, IO – The wave of retrenchment in the textile industry continues to rise. Since January, six factories have closed, rendering tens of thousands of workers jobless.

The National Federation of Trade Unions (KSPN) president Ristadi said that the decline in orders have resulted in factories struggling to survive.

“There are more textile factories closing. This adds to the list of textile factories that have laid off workers since the beginning of 2024. There are those that are efficient, there are those whose factories have closed because they can no longer survive,” explained Ristadi, per CNBC Indonesia, Wed (19/6).

The shut textile factories in question are PT S. Dupantex and PT Pamor Spinning Mills in Central Java and PT Alenatex in West Java which shed 700 workers, followed by PT Kusumahadi Santosa, Central Java, which affected 500 workers and PT Kusumaputra Santosa in Central Java which laid off 400 workers. Lastly, PT Sai Apparel in Central Java has let go 8,000 workers. Ristadi said the data only applied to factories where KSPN members work.

“Currently there are a lot of layoffs but many of them don’t get reported. There are also those who do it gradually in several phases,” explained Ristadi.

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He hoped the government can act more responsively to address the issue as it will affect the performance of the national manufacturing sector and lead to personal and social costs of unemployment in the country because textile manufacturing is a labor-intensive sector.

“These layoffs will have an impact on the weakening of purchasing power which will then affect the economy as a whole,” pointed out Ristadi. (un)

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