Indonesia'S Textile Industry Slipped And Factory Layoffs

Indonesia's textile industry has shrunk this year, with frequent layoffs in factories.

According to Indonesian media's comprehensive report in June 19th, Indonesia has been in Indonesia since the beginning of this year.

Shrinking, factories frequent layoffs.

Indonesia is the fourth most populous country in the world with a total population of about 250 million. The textile industry has always been highly valued by the Indonesian government. It is also one of the earliest developed industries in Indonesia, and the total number of Indonesian textile workers is about 1 million 500 thousand.

In recent years, textiles and

It has been Indonesia's top 4 export commodities.

Since the beginning of this year, due to the weak global economy and insufficient demand in the international market, the production costs of raw materials and wages in Indonesia have been rising, resulting in the shrinking of the industry, and more and more textile workers are also forced to lay off.

Ade Sutlacha, chairman of the Indonesian textile association (API), said that at present, most of the textile factories in Indonesia are piling up, forcing them to reduce production costs by reducing the number of workers.

Only about 6000 workers have been laid off this year in several textile enterprises in Bandung City, West Java province. If the laid-off workers in other parts of Java are included, the total number of laid-off workers will reach tens of thousands.

Since 2014, the cost of electricity and gas has been raised and the minimum wage and health insurance rates for textile workers have been raised. The cost of textile enterprises has risen rapidly, and more and more textile companies have chosen to lay off workers to cut costs, he added.

Moreover, these factors have led to more Indonesian businessmen choosing to import from neighboring countries.

Since imports of textiles from other Asian countries are cheaper than those purchased from Indonesian domestic manufacturers, this has also led to the downsizing of domestic textile manufacturers in Indonesia to reduce production.