The Ministry Of Manpower Investigates Reports Of Layoffs Of 250,000 Workers Due To The Closure Of 60 Textile Factories Due To Illegal Imports

The Ministry of Manpower (Kemenaker) is investigating a report from the Filament Serat and Benang Producers Association (APSyFI) regarding the closure of 60 textile factories and layoffs (PHK) on 250,000 employees due to the rise of illegal imports.

"On APSYFI's complaint, all parties should be wise, find out whether this complaint is true or not. If true, cooperation is needed by all parties, because illegal imports are related to the lives of workers," said Deputy Minister of Manpower (Wamenaker) Immanuel Ebenezer in Jakarta, Wednesday, December 18, 2024.

APSYFI General Chair, Redma Gita Wirawata, revealed that in the last two years, the domestic market has been flooded with illegal imported textile products, especially from China.

"As of 2024, 60 factories have been closed, 250,000 employees have been laid off," said Redma.

According to him, during the Covid-19 pandemic in 2021, imports from China were stopped. However, after the lockdown policy ended, imports from China were reopened, and illegal products began to flood the Indonesian market.

In addition to weakening the textile and textile product (TPT) sector, Redma explained that this phenomenon also has an impact on the petrochemical industry that produces textile main raw materials such as the terephthalic acid (PTA). He assessed that this condition could trigger de-industrialization.

Wamenaker Immanuel emphasized that the Ministry of Manpower is focused on the protection aspect of workers. However, he reminded the importance of cross-institutional cooperation to overcome the problem of illegal imports.

"We can only say that APSYFI complaints deserve the attention of all parties. If it is wrong, we deserve to remind APSYFI. However, if true, all parties need to work together to end illegal imports that weaken employment," he said.

Previously, the Coordinating Minister for Political, Legal and Security Affairs (Menko Polhukam) Budi Gunawan together with the Minister of Finance Sri Mulyani explained the performance of the Decree on Prevention and Eradication of Smuggling.

"During the period of 4-11 November 2024, 283 cases of smuggling of various commodities such as textiles, machinery, electronics, cigarettes, liquor, and narcotics have been carried out," said Budi Gunawan.

Sri Mulyani added that during January-November 2024, the government had taken 12,490 illegal imports with a value of 4.6 trillion. As for illegal exports, 382 actions were taken with a value of 255 billion goods.

The Ministry of Manpower hopes that coordination across ministries and institutions can strengthen supervision of illegal imports while protecting the domestic industrial sector. "This issue is not only a matter of the economy, but also concerns the survival of workers and their families," concluded Immanuel.

The government urges the public and industry players to continue reporting illegal activities that could harm the national industrial sector and threaten workers' welfare.