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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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API Denied There Are 188 Bankrupt Textile Factories PDF Print E-mail
Written by Maizer   
Wednesday, 09 October 2019

The Indonesian Textile Association (API) asked for data used as a reference for the West Java Champion Acceleration Team (TAJJ) in the Labor Sector, which stated that until the third quarter of 2019 there were 188 textile companies in West Java losing money. The acceleration team also stated that due to the loss of hundreds of textile companies, 68,000 workers were laid off.

 

API Chairman, Ade Sudrajat said, the number of 188 textile companies that went bankrupt and there were 68 thousand workers in the layoffs until the third quarter of 2019, was far-fetched. He said, during 2019 there were at most 10 industries that closed down or relocated.

 

"Where is data from? This is far-fetched. The matter of workers being laid off up to 68 thousand is also not true, "said Ade.

 

According to Ade, from September to October the domestic market was indeed sluggish. But the export market continues to grow. So he said, this sluggishness did occur in industries that were oriented towards the domestic market. The sluggish domestic market, he said, was affected by the slump in commodity prices such as palm oil, rubber, coffee and several other commodities. This has an effect on the decline in people's purchasing power. Today's society chooses priority shopping for primary needs and delays shopping for clothes.

 

In addition, said Ade, the weakening of the domestic market was also influenced by the flood of imported textile products from China. However, this cannot be driven away because it has become a global free market agreement listed in the Wold Trade Organitation (WTO). However, Ade said, there were several steps taken by the government to protect the domestic market and not violate the WTO agreement, namely by adding import duties on imported goods.

 

 

 

"There are two steps to the save guard to protect this domestic market, namely by imposing import duties on imported goods. Then our export-oriented industry must be more aggressive, "he said.

 

As is known, TAJJ for Manpower and Transmigration Department of West Java Province Hemasari Dharmabumi, said, until the third quarter of 201, as many as 188 textile and textile product companies in West Java were out of business or relocating from the West Java region.

 

This caused 68 thousand workers to be laid off. This condition occurred due to the opening of a textile import tap from China. In addition, this is also caused by the inability of the industry to adapt to technology.

 

"The industry is old and even in 2019 it turns out there are still looms used by garment factories there that open machines," he said.

 

The majority, the garment companies in West Java that went bankrupt, originated in the Majalaya region, Bandung Regency. Mostly, relocation companies move to Central Java.

 

Therefore, he said, the West Java Province Manpower and Transmigration Office has made various efforts so that the existing textile factory does not go out of business like the wage policy. This policy is being pursued by raising all stakeholders in the garment sector.

 

 
		
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