Jakarta. The Manpower Ministry predicts layoffs in the textile industry could rise sharply, with job cuts potentially increasing from 80,000 in 2024 to 280,000 workers, according to Deputy Minister Immanuel Ebenezer Gerungan.

“Our data indicates that layoffs could reach 280,000 cases,” Immanuel, known as Noel, said during a press briefing in Jakarta on Wednesday.

He further revealed that 60 textile companies are planning layoffs, potentially affecting up to 200,000 employees. 

“We are working to prevent layoffs. We don’t want to draw pessimistic conclusions. There is still hope to reduce the numbers,” Noel assured.

According to Noel, one of the primary factors contributing to the industry’s struggles is Trade Ministerial Regulation (Permendag) No. 8 of 2024. Business associations have criticized the regulation for undermining the sustainability of the textile sector.

Permendag No. 8 of 2024 was introduced to address container congestion at major ports following the implementation of Permendag No. 36 of 2023. It removed technical licensing requirements for importing certain commodities, including electronics, traditional medicines, cosmetics, footwear, ready-to-wear clothing, and accessories.

He said the regulation weakens the competitiveness of domestic industries by facilitating the entry of raw materials and finished goods into local markets, ultimately pressuring industries to cut their workforce.

“We want to protect employees, and this regulation poses significant risks to Indonesia’s textile industry,” Noel added.

Noel believes revising the import regulation could address one of the main factors driving the surge in layoffs.

“I hope to serve as a bridge for communication between the industrial sector, workers, and the government in tackling this layoff challenge,” he concluded.

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