Indonesia Textile Industry Faces Layoff Chill... Korean Companies Also Hit

Order Volume of Korean Sewing Companies Also Drops by 30%

[Asia Economy Reporter Koo Chae-eun] The textile and garment industry, one of Indonesia's major job creation markets, is experiencing a large-scale layoff crisis, the daily Jakarta Post reported on the 7th. Indonesia's textile and garment industry ranks among the top 10 worldwide and is one of the key industries driving the Indonesian labor market.

According to the West Java Textile Entrepreneurs Association (PPTPJB), 18 companies have closed from the beginning of this year until October, and at least 64,000 workers from 124 textile companies have lost their jobs. Jan May, chairman of PPTPJB, said, "The number of workers losing their jobs due to contract non-renewals is expected to continue increasing."

According to the Indonesian Central Statistics Agency (BPS), as of 2020, the number of workers employed in the textile and garment industry was 1.1 million. This accounts for about 20% of employment in Indonesia's medium and large industries. Additionally, it holds significant economic weight, accounting for 7% of the GDP of Indonesia's major manufacturing sectors.

Jemi Kartiwa, chairman of the Indonesian Textile Association (API), also explained that while overseas buyers are not canceling orders, they are requesting shipment delays of more than two months, resulting in orders decreasing by more than 30% in the third quarter compared to the same period last year.

Many Korean textile and garment companies operating in Indonesia are also facing these difficulties. An Chang-seop, chairman of the Korea Garment Association, said, "Knitwear and swimwear companies that mainly export to the U.S. and Europe are particularly struggling," adding, "With order volumes decreasing by about 30% on average, factory operating rates are also declining."

This content was produced with the assistance of AI translation services.