Factory Working Hours Cut, 45 Thousand Textile Workers Lay Off

Jakarta, CNBC Indonesia – The national textile and textile product (TPT) factory is currently being hit by bad news. This is because they are affected by the domino effect of weakening purchasing power in export destination markets.

This is reflected in the purchase of textile exports during the last 2 months which reportedly fell by around 30% compared to September-October 2021. This condition then resulted in a reduction in working hours.

Chairman of the Indonesian Textile Association (API), Jemmy Kartiwa Sastraatmadja said there are several factories that have closed Saturday-Sunday, some are now only working 4-5 days a week, thus shutting down 1 to 2 production lines.



“This is a result of the global weakening and we have felt it especially for the last 2 months,” said Jemmy, quoted on Saturday (22/10/2022). Worse yet, Jemmy said this has also affected 45 thousand textile industry workers who have been laid off until now.

I think there are 45 thousand people, from upstream to downstream in the textile industry. Not only API members, not only garment factories. There are spinning, dyeing, weaving, garment factories,” he said.

“From the report data, the locations are in West Java and Central Java. Not only industry, but IKM are also affected. Because there are a lot of garment businesses in hijab, robes, koko clothes, IKM that sew for big brands. They are affected by this weakening of purchasing power, ” added Jimmy.

On the other hand, Jemmy said, he could not confirm whether or not there had been layoffs by API members. “I can’t say there were no layoffs. What is clear is that they have started to reduce working hours. Some have been laid off. If the conditions continue to be depressed, it is not impossible to start with contract employees (PHK),” said Jemmy.

He explained that the domino effect of the global economic slowdown, especially in the main destination market for Indonesian textiles, triggered delays in shipping goods.

“They (manufacturers) didn’t say the order was cancelled. But, it was a delay. There is no certainty in what is called a delay. That’s why the average is currently laying off,” he said.

Regarding workers’ wages with the effect of being laid off or cutting working hours, Jemmy said it was the company’s decision.

“It’s a bipartite agreement (employees and companies). Associations cannot enter that realm. What is clear is that communication must be prioritized. How can we prevent layoffs,” concluded Jemmy.

[Gambas:Video CNBC]

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