Wave of layoffs (PHK) in the national textile and textile product (TPT) industry. Not only in Purwakarta, factories in Karawang were also reported one by one to have laid off workers, leave Karawang, or even close completely.
“Until now, the trend of layoffs and factory closures is still continuing. Most recently there was a closure in Purwakarta,” said General Chair of the Indonesian Fiber & Filament Yarn Producers Association (APSyFI) Redma Gita Wirawasta to CNBC Indonesia, Tuesday (12/12/2023).
“In Karawang there is only 1 garment company left. Indeed, since 2014, one by one they have moved to Central Java. Since 2019, there has been 1 garment company left,” he added.
In fact, said Redma, before 2014 there were more than 10 large-scale companies.
“3 years ago, during Covid, no one closed, they went bankrupt, they were laid off. During Covid, they were only laid off temporarily because production was cut by 50%,” he said.
“Online sales are still going well because there are minimal imported goods. Even though we have difficulty exporting, the domestic market is quite helpful,” he said.
Read: One by one the factories in Purwakarta are collapsing, what’s going on?
According to Redma, the collapse of the company and then closing, layoffs or leaving was triggered by various factors.
Including the decline in export performance, while the domestic market continues to be hit by imports.
“Our projection this year is that exports will only be US$12 billion, down 13% from last year. We also project the export volume will fall, by September 2023 it will have fallen by 15%,” he said.
“According to BPS data, imports will decrease, but if market conditions are full, there will be more illegal imports,” he added.
On the other hand, continued Redma, employers have given up when it comes to wage increase policies.
“It’s up to you how much you want to increase, just close it if you can’t afford it,” concluded Redma.
source: https://www.cnbcindonesia.com/news/20231212183747-4-496592/tak-cuma-purwakarta-pabrik-garmen-di-daerah-ini-nyaris-punah