Indonesian Textile Industry Faces Crisis as Factories Shut Down

Significant Job Losses Reported

The Indonesian textile industry is experiencing a severe downturn, with five major factories ceasing operations by 2025. This closure has resulted in substantial job losses, estimated at around 3,000 workers. The Secretary General of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI), Farhan Aqil Syauqi, highlighted that the primary cause of these closures is the influx of cheap imported textile products that has significantly impacted domestic sales.

Industry-Wide Challenges

The situation is more dire than the closures alone suggest. Farhan noted that six other factories are currently operating below 50% capacity, with some functioning on an on-off basis. Additionally, five polymerization machines have been halted. These developments indicate a broader crisis within the textile manufacturing sector, potentially signaling deindustrialization in Indonesia.

Economic Implications

The closure of these factories not only affects the workers but also has broader economic implications. It reflects the challenges faced by Indonesian manufacturers in competing with cheap imports and dumping practices. The textile industry, once a significant contributor to Indonesia's economy, is now struggling to maintain its footing in the face of global competition and domestic challenges.