Mass Layoffs Hit Indonesian Textile and Footwear Industries

Rising Unemployment

The Indonesian labor market is facing significant challenges as over 126,000 workers have lost their jobs between 2023 and October 2025, according to the Konfederasi Serikat Pekerja Nusantara (KSPN). The majority of these layoffs have occurred in the textile and footwear industries, which have been struggling due to various economic pressures.

Recent Layoff Trends

The data from KSPN shows that 47,115 workers were laid off between January and October 2025 alone, indicating a continuing trend of job losses in these industries. The total number of layoffs reported to KSPN from 59 textile and textile product companies and 13 non-textile companies has reached alarming levels.

Causes of Layoffs

The primary reason cited for these layoffs is the influx of imported products into the domestic market. This has led to increased competition for local manufacturers, forcing many companies to implement efficiency measures and, in some cases, close their operations entirely. The impact on workers has been severe, with many families affected by the sudden loss of income.

Industry Impact

The textile and footwear industries have historically been significant employers in Indonesia. The current wave of layoffs not only affects the workers directly involved but also has broader implications for the economy and related industries. The situation highlights the need for effective policies to protect domestic industries and workers from the adverse effects of globalization and increased competition.