Entrepreneurs Expect Government To Open Economic Activities: Textile Industry Unable To Adapt To PPKM Policy

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian Textile Association or API admitted that it objected to the extension of the Policy for the Implementation of Restrictions on Community Activities (PPKM) levels 3 and 4 in the Java and Bali regions. This is because this labor-intensive industry is unable to adapt to the restrictions. Therefore, the API also asked the government to gradually reopen economic activities.

Secretary General of API Rizal Tanzil Rahman said that the character of textile production and trade in Indonesia is very vulnerable to activity restrictions. If the PPKM level policy continues, it is certain that this industry will be in a state of suspended animation. It even led to an explosion of layoffs.

"Now the conditions are tough, if we extend our industry again, there are already employees who have reduced employees because they cannot survive with the regulation for the character of the textile industry, moreover the market is in a quiet condition, especially domestically because textile trading activities are also limited," he told reporters, Wednesday, August 4th.

Rizal said, with the PPKM policy, production capacity decreased sharply. On average, the textile industry, which usually absorbs thousands of workers, is only able to produce 50 percent of the total existing capacity. In fact, before the policy was introduced, the industry began to recover.

Last year, the total number of layoffs from textile industry employees reached 2 million people. While those who have been called again reached 1.2 million people.

Therefore, Rizal hopes that in the future the government will slowly reopen economic activities so that production capacity can increase. In addition, the company also ensures that it will strictly adhere to health protocols and vaccinates all its employees.

"Hopefully the PPKM will not be extended again. We are trying to comply with government regulations and then also trying to vaccinate employees up to 80 percent," he said.

As is known, President Joko Widodo (Jokowi) has decided to extend the implementation of Level 4 Community Activity Restrictions (PPKM) from August 3 to August 9, 2021. The extension applies to certain districts or cities.

To reduce the burden on the community, the government continues to encourage acceleration in social assistance for the community. The assistance includes the Family Hope Program (PKH), cash social assistance (BST) and direct village cash assistance (BLT Desa). There is also assistance for micro and small businesses, street vendors and food stalls, as well as salary subsidies.