7 Indonesian Textile and Footwear Companies with the Largest Layoffs through 2024

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Erlina Fury Santika 27/12/2024 18:56 WIB

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Based on data received by Katadata from several associations, a number of textile companies have experienced shutdowns and mass layoffs. The largest is PT Asia Pacific Fiber in Karawang, with a total

7 Textile and Footwear Companies with the Highest Number of Layoffs (2023-2024)

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7 Textile and Footwear Companies with the Highest Number of Layoffs (2023-2024)

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At least 60 textile and footwear companies have collapsed in the last year. This aligns with the statement by the Deputy Minister of Manpower, Immanuel Ebenezer.

Immanuel explained that these 60 companies conducted layoffs affecting 13,061 permanent employees and stopped contract renewals for 5,000 employees.

Data received by *Katadata* from the Indonesian Textile Association (API), the Indonesian Synthetic Fiber Producers Association (APSyFI), and the Nusantara Workers' Confederation (KSPN) shows that, of these 60 companies, seven textile and footwear companies conducted the largest layoffs from 2023 to 2024.

The largest was PT Asia Pacific Fiber, located in Karawang, with a total of 2,500 laid-off workers. This company produces polyester chips, fibers, and filament yarns. Asia Pacific Fiber is a long-standing textile company established in 1984 in Semarang, Central Java, under the name PT Polysindo Eka Perkasa Tbk.

(Read also: [Declared Bankrupt, Sritex Has Faced Capital Deficiency Since 2021](https://databoks.katadata.co.id/pasar/statistik/6720aa5043508/dinyatakan-pailit-sritex-defisiensi-modal-sejak-2021))

Not only the company located in Karawang, Asia Pacific Fiber is also known to have reduced its workforce, but the exact number has not been fully disclosed.

Second is PT Victory Chingluh Indonesia, with 2,000 laid-off employees. Chingluh is a well-known footwear producer for brands like Nike and Reebok, established in 1969.

Third, PT Pismatex, which laid off 1,700 employees due to bankruptcy. Pismatex is the producer of Gajah Duduk, established in 1972.

Fourth is Kabana Textile Industri with 1,200 laid-off employees. This spinning company is located in Pekalongan, Central Java.

Fifth is PT Tuntex Garment, with 1,163 layoffs. This factory produces for famous global fashion brands such as Nike and Puma.

Outside the top five, the number of layoffs was below 1,000 workers. These include PT Delta Merlin Tekstil II with 924 employees and PT Wiska with 700 employees.

The Deputy Minister of Manpower, Immanuel Ebenezer, blamed the issuance of Trade Minister Regulation No. 8 of 2024 as the main cause of the textile companies' downfall. Therefore, Immanuel stated that one of the mitigations being undertaken is to push for a revision of Trade Minister Regulation No. 8 of 2024.

"Textile entrepreneurs and workers told me that the source of layoffs in the textile industry is Trade Minister Regulation No. 8 of 2024, which is too lenient on imports of ready-made garments," said Immanuel at his office on Monday (23/12/2024).

(Read also: [The Number of Sritex Employees Has Shrunk Since the Beginning of the Pandemic](https://databoks.katadata.co.id/ketenagakerjaan/statistik/672224d31f355/jumlah-karyawan-sritex-menyusut-sejak-awal-pandemi))

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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7 Indonesian Textile and Footwear Companies with the Largest Layoffs through 2024

7 Indonesian Textile and Footwear Companies with the Largest Layoffs through 2024

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7 Indonesian Textile and Footwear Companies with the Largest Layoffs through 2024

7 Indonesian Textile and Footwear Companies with the Largest Layoffs through 2024

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