The Menperin's Steps To Save The Central Textile And Footwear Industry 'Sakarat'

JAKARTA - The Ministry of Industry (Kemenperin) has formed a task force (task force) for the textile and textile product (TPT) industry as well as footwear affected by the global economic crisis.

The task force has the main task of making an inventory of the textile and footwear industry which is affected by the global economic crisis, as well as the problems faced.

"The task force is also coordinating with the K/L regarding the implementation of the mitigation strategy taken," said Industry Minister Agus Gumiwang Kartasasmita in a statement in Jakarta, Tuesday, November 8.

Agus added that his party is currently seeking a new market for export for the industrial sector.

"We are trying to open access to markets to Latin and South America, Africa, Middle Eastern countries, and Asia," he said.

In addition, Agus continued, steps to dominate the domestic market, by strengthening and encouraging promotion, as well as cross-sectoral cooperation so that the program to increase the use of domestic products (P3DN) continues to grow.

"Through this program, it will also grow the industrial sector itself," said Agus.

He added that other efforts that need to be encouraged are strengthening industrial competitiveness with easy access to raw materials, strengthening the business ecosystem, and strengthening the production system.

"We can see with various instruments such as BMDTP, as well as limited restrictions (largas), and many other instruments that we can use," said Agus.

In the third quarter of 2022, the textile industry grew to 8.09 percent (yoy), but experienced a q-to-q slowdown, contracting to -0.92 compared to the second quarter of 2022.

However, cumulative exports still increased until September 2022 by 15.6 percent when compared to data in the same period in 2021.

Meanwhile, the footwear, skin, and leather goods industry grew 13.44 percent (yoy) in the 2022 period.

Cumulative footwear exports until September 2022 also increased by 35.0 percent compared to the same period the previous year.

The growth performance of this sub-sector is still quite high because the transfer of orders from China and Vietnam to Indonesia, so that the national GDP is still positive. Even so, the Ministry of Industry continues to be aware of the impact of the global crisis.

Just to note, based on reports from a number of associations, the textile and footwear industry is experiencing a slowing performance.

This is due to the decline in utilization in the fiber industry sector by 20 percent, 30 percent spinning, 50 percent weaving and knitting, 50 percent garment, 20-30 percent baby clothes, and 49 percent footwear.

In fact, some companies have cut their working hours to 3-4 days, which is usually 7 working days.

Due to these conditions, workers affected by layoffs from the textile and garment industry reportedly reached 92,149 thousand people and 22,500 people from the footwear industry.

However, from the results of the report, a cross check is being carried out in the field by the internal task force of the Ministry of Industry and cross-ministerial and related institutions.