The Ministry Of Industry Disbursed The Cause Of TPT Industry Problems Currently

Acting Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Reni Yanita (second from the left). (Photo: Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) revealed that a number of problems are currently being faced by the textile and textile product (TPT) sector.

Acting (Plt) Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Reni Yanita, said that the wave of layoffs (PHK) in the TPT sector continues to occur. It is recorded that currently there are 14,000 people who have been laid off.

"For large industries, there are indeed several layoffs carried out. Although if it is calculated, there are not more than 20,000, only 14,000 (people)," said Reni in a media discussion on Permendag Number 8 of 2024, the Real Form of National Petrochemical Industry Denormalization at the Ministry of Industry office, Jakarta, Monday, July 8.

He also revealed that a number of problems faced by the TPT sector. First, the flood of imported finished products at very low prices in direct contact with domestic production.

"The import approval (PI) by the Ministry of Trade does not consider price factors and supply-demand," he said.

Then, there are imported floods that are sold through market places and social media, such as TikTok Shop and so on. Then, illegal imports and imports of used clothing (thrifting)

"The stigma of sunset industry makes it difficult for the TPT industry to access financing sources, even though the percentage of TPT machines is more than 20 years," he said.

Next, the decrease in the utilization of the convection and footwear industry of IKM by an average of 70 percent since the implementation of Permendag 8/2024.

Then, global geopolitical problems that have implications for decreasing demand for finished clothing and footwear from export destination countries, especially the United States and the European Union.

"The I-EU CEPA trade cooperation has not been signed," he said.

According to Reni, if massive layoffs continue to occur in the TPT industrial sector, it will cause the loss of skilled human resources in the sector.

"This is also our homework (PR) together with what has been done related to upskilling, then there are also several human resources who already have their SKKNI, this will also be lost," he added.