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APSyFI: The national textile industry is headed for a trade deficit, 2018 exports grow 1% and imports grow 14% (yoy).--IKATSI: The growth of the national textile industry is still hampered by floods of imports, Indonesia needs a clothing security law.


	
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Home arrow Latest News arrow Textile Factory Layoff Employee


				
			
			
Textile Factory Layoff Employee PDF Print E-mail
Written by Maizer   
Friday, 27 September 2019

Pressure on the textile and textile product (TPT) industry is not over. The flow of imports in fabric products has caused many industries to be injured and had to lay off employees and layoffs this year.

 

Deputy Secretary of the Indonesian Textile Association (API) of West Java, Rizal Tanzil said based on the results of the team's search from API in two textile factories producing fabrics in Cisirung and Majalaya last week, Bandung Regency, the results were indeed quite sad. The two factories are still producing but with very minimal capacity.

 

"Some produce with utilization of only 40% and 25%, whereas if normal utilization is up to 80% of installed capacity," said Rizal.

 

Rizal said the owners of the two factories did not want to mention the identity of the factory, but wanted to open up about the ailing business conditions. He said fabric production from the two factories was piled up in warehouses, there were no orders.

 

"Testimonials from the factory manager, 'I have worked more than 30 years, only this year is severe only a quarter of the machines are running'," Rizal said imitating.

 

He said the pressure on the two factories had been in the last two years and the peak was nearing closing in 2019.

 

The consequence of the minimal production capacity of the two factories will have an impact on the labor sector. Rizal said the two factories had made a policy of laying off employees while waiting for orders, until termination of employment (layoffs).

 

Initially there were factories that had 1,200 workers and then downsized only 500 people, while the rest had factories that initially had 600 workers, leaving only 100 workers.

 

"Some of the owners still employ employees out of pity, but production is very low," he said.

 

 
		
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