The National Confederation of Workers’ Unions (KSPN) has reported the closure of seven textile and textile product (TPT) factories in Central Java from January to August, leading to over 11,340 workers being laid off as of Monday, September 9, 2024.
KSPN President Ristadi said that all the closed factories are located in Central Java. The latest layoff occurred at PT Sinar Panca Jaya, which dismissed over 340 employees before shutting down in August 2024.
“In total, approximately 3,000 workers were laid off by PT Sinar Panca Jaya in stages,” Ristadi said on Thursday, October 3, 2024.
He noted that the total number of workers in the textile and textile product industry laid off by Monday, September 9, 2024 reached 15,114.
Of these, 75 percent were due to factory closures, while the remaining 25 percent (or 3,774 workers) were laid off for efficiency reasons.
Eight factories, including six in Central Java and two in Bandung, West Java, laid off their workers for efficiency.
The highest number of layoffs occurred at PT Daliatex in Bandung, affecting over 500 workers, while PT Agung Kuncoro Textile had the smallest, dismissing only 50 employees.
Below is a list of textile factories that closed and laid off workers between January and August:
- PT S Dupantex, Central Java: 700 layoffs;
- PT Alenatex, West Java: 700 layoffs;
- PT Kusumahadi Santosa, Central Java: 500 layoffs;
- PT Kusumaputra Santosa, Central Java: 400 layoffs;
- PT Pamor Spinning Mills, Central Java: 700 layoffs;
- PT Sai Apparel, Central Java: 8,000 layoffs;
- PT Sinar Panca Jaya, Semarang, Central Java: 340 layoffs.
Additionally, factories that laid off workers due to efficiency include:
- PT Bitratex, Semarang: 400 layoffs;
- PT Johartex, Magelang: 300 layoffs;
- PT Pulomas, Bandung: 214 layoffs;
- PT Daliatex, Bandung: 500 layoffs;
- PT Delta Merlin 1, Karanganyar: 200 layoffs;
- PT Delta Merlin 2, Karanganyar: 100 layoffs;
- PT Agung Tex, Karanganyar: 50 layoffs;
- PT Samwon, Semarang: 350 layoffs.
Ristadi projected that nationwide layoffs in the TPT industry could exceed 50,000, as some factories may not report layoffs to the government unless disputes arise between management and workers.
The Ministry of Manpower recorded nearly 53,000 layoffs across various industries, with Central Java leading at 14,767, followed by Banten with 9,114, and Jakarta with 7,469 layoffs.
The manufacturing industry accounted for 45.31 percent, or 24,013, of these layoffs.
Ristadi attributed the surge in layoffs to the ease of importing goods since the 2000s, which has led to domestic factories ceasing production due to the influx of imported products.
The inability of locally produced goods to compete with lower-priced imports has severely impacted the textile sector, exacerbated by price-sensitive local consumers.
He highlighted seven manufacturing subsectors heavily affected by imports: textiles, ceramics, footwear, apparel, cosmetics, electronics, and other finished goods.
In response, the government has established a Task Force to Monitor Specific Goods or Illegal Imports to safeguard local industries. “The government is aware that local products struggle to compete with cheaper imports, especially from China,” he said.
