Mass Layoffs at Textile Factories as Export Value Drops in Q1 2024

Many textile factory workers were laid off between January and June 2024.

This was revealed by Ristadi, President of the Nusantara Workers' Confederation (KSPN).

"From January to early June 2024, approximately 13,800 textile workers were laid off," said Ristadi, as quoted by CNNIndonesia.com on Tuesday (June 11, 2024).

Ristadi stated that these layoffs were spread across factories in West Java and Central Java, and were generally triggered by sluggish orders.

"Companies operate when they have orders; otherwise, they shut down. If this continues, the company's cash flow won't hold up, and they'll close down too," he said.

According to data from the Central Statistics Agency (BPS), the performance of textile industry exports has weakened at the beginning of this year.

In the first quarter of 2024, the value of national textile industry exports reached US$913.84 million, down 2.14% compared to the first quarter of last year (year-on-year/yoy).

However, the decline in performance did not occur evenly across all sub-sectors.

The sub-sectors of the textile industry that weakened in the first quarter of 2024 were only yarn spinning, woven fabrics, and other textile goods.

Meanwhile, the sub-sectors of man-made staple fiber, man-made filament yarn/thread/strip, knitted fabrics, textile fibers, embroidered/appliqué fabrics, and silk saw an increase in export value.

Here's a breakdown of the growth of textile industry sub-sectors in the first quarter of 2024, separated between those that weakened and those that strengthened:

Weakened Export Value:

* Yarn spinning: down 12.89% (yoy)
* Woven fabrics: down 9.11% (yoy)
* Other textile goods: down 7.3% (yoy)

Strengthened Export Value:

* Man-made staple fiber: up 15.05% (yoy)
* Man-made filament yarn/thread/strip: up 15.26% (yoy)
* Knitted fabrics: up 29.22% (yoy)
* Textile fibers: up 5.99% (yoy)
* Embroidered/appliqué fabrics: up 16.8% (yoy)
* Silk: up 186.53% (yoy)