Indonesian Textile Industry Faces Severe Job Losses

Layoff Statistics and Industry Impact

The Indonesian textile industry is experiencing a significant crisis with substantial job losses reported in 2025. According to data from Konfederasi Serikat Pekerja Nusantara (KSPN), 47,115 workers were laid off between January and October 2025. This brings the total number of layoffs since 2023 to 126,160 workers across 72 companies, with 59 being textile and textile product (TPT) companies and 13 from non-TPT sectors.

Causes and Industry Challenges

KSPN President Ristadi attributes the massive layoffs to the flooding of the domestic market with imported products, which has led to industry contraction. Many companies have been forced to implement cost-cutting measures and close production lines, resulting in widespread job losses. The situation highlights the challenges faced by Indonesia's textile industry in competing with international products, particularly imports.

Historical Context and Future Outlook

The layoff figures for 2025 continue a trend observed since 2023. In 2024 alone, KSPN reported 79,045 workers being laid off, with some cases dating back to late 2022. The ongoing situation suggests that the textile industry is under severe stress, potentially requiring policy interventions to protect domestic manufacturers and workers.