Recently, Indonesian Deputy Minister of Labor, Imanur, revealed in a public speech that the Indonesian textile industry is facing unprecedented difficulties and is expected totwo thousand and twenty-fiveThe annual number of layoffs will reach an astonishing 200000. This news has attracted widespread attention, and various sectors have expressed concerns about it.

According to Deputy Minister Imannur, 60 textile companies are currently planning layoffs, which could affect the livelihoods of up to 200000 employees. He pointed out that the government is closely monitoring the development of this situation and making efforts to take measures to prevent further expansion of layoffs. However, in the face of severe market conditions and industry challenges, the hope of reducing layoffs still appears slim.

So, what exactly is causing this predicament in Indonesia's textile industry? Deputy Minister Imannur pointed the finger at the Trade Ministerial Order No. 8 of 2024. This order relaxed import policies aimed at addressing port container congestion issues. However, the implementation of this policy has brought unexpected consequences. The influx of more raw materials and finished products into the Indonesian market has severely weakened the competitiveness of the domestic textile industry. As a result, many textile companies have fallen into operational difficulties and have had to resort to layoffs to reduce costs.

In addition to the impact of import policies, the Indonesian textile industry also faces fierce competition from cheap products from China. In recent years, with the signing of the China ASEAN Free Trade Agreement, a large number of cheap products from China have flooded into the Indonesian market. These products quickly occupied market share with low prices and high quality, causing a huge impact on local textile enterprises in Indonesia. Many companies have fallen into difficulties and even face the risk of bankruptcy due to their inability to compete with these Chinese products.

Faced with this severe situation, the Indonesian government has stated that it will actively take measures to help the textile industry overcome difficulties. On the one hand, the government will strengthen the supervision of imported products to prevent more cheap products from entering the market and impacting local industries. On the other hand, the government will also increase its support for textile enterprises, providing tax incentives, financial support and other policies to help enterprises reduce costs and improve competitiveness.

However, for textile companies that are already struggling and employees who are about to lose their jobs, whether these measures can take effect in a timely manner is still unknown. They call on the government and all sectors of society to give more attention and support to jointly address this industry crisis.