The Ministry Of Industry Reveals The Cause Of The Mass Layoffs Even Though The Condition Of The Indonesian Industry Is Moncer This Month

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Industry noted that the industrial confidence index (IKI) in June 2024 was at 52.50 or still at an expansion level.

Meanwhile, business activities in general also increased by 1 percent.

However, the condition of the Indonesian industry is not in line with what happened in the field.

The reason is, recently there have been many layoffs (PHK), especially for the textile and textile product (TPT) sector.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said there was a difference in IKI's optimism with the conditions on the ground.

According to him, if IKI is calculated from the non-micro macro sector.

"The issue of optimism in IKI has increased, but how come the field is different. I said that from IKI it is macro, yes, all sub-sectors," said Febri in the release of IKI June 2024 which was monitored online, Thursday, June 27.

Febri assessed that many layoffs at textile or convection factories were caused by factors from macro manufacturing as a whole.

"So, some of the other industries also have quite good performance in June (2024). However, for some sub-sectors that we think are affected by the import relaxation, there are indications of a decline in performance. Maybe it can also be seen from their optimism, some have experienced a decline in optimism after the implementation of Permendag 8 (regarding import policies)," said Febri.

"If you look at the sub-sector, it will be more visible in fact. But what we are showing now is only per macro for the manufacturing industry or the non-oil and gas processing industry," he added.

Previously, Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto said that the widespread termination of employment (PHK) in the textile industry was due to the current condition of the textile industry on the global scale.

"Indeed, yesterday's textile industry had a problem because its global problem," said Airlangga at his office, Thursday, June 20.

Airlangga said, when textile entrepreneurs want to sell their products in the country.

However, there are limitations over the domestic market itself.

"He wants to sell domestically, but there are limitations to domestic markets," he said.

As for data from the Confederation of Nusantara Trade Unions, at least six textile factories have gone out of business and caused more than 11,000 workers to be laid off.

The six textile factories are PT S Dupantex, PT Alenatex, PT Kusumahadi Santosa, PT Kusumaputra Santosa, PT Pamor Spinnning Mills and PT Sai Apparel.

Meanwhile, the West Java Province Textile Product Entrepreneurs Association noted that 22 factories have been closed in the area.