Spotlight on the Textile Industry: Government's Commitment to Protect Workers and National Companies Amid Global Threats

Jakarta, INTI - On Tuesday, October 29, 2024, President Prabowo Subianto held a limited meeting with several ministers at the Merdeka Palace, Jakarta, to discuss recent developments in the domestic textile industry, which is facing numerous challenges. A primary focus of this meeting was the condition of a major textile company, Sritex, currently in bankruptcy proceedings. This meeting reflects the government’s commitment to maintaining the stability of the textile sector, a strategic industry in the national economy.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, conveyed that the government is determined to continue supporting the sustainability of the textile industry. "The President seeks an update on the current situation in the textile industry, particularly regarding Sritex. His directive is for the company to continue operating and to sustain its workforce optimally," said Airlangga.

Textile Industry Crisis: Challenges and Government Measures

Data from the Indonesian Textile Association (API) shows that the textile industry has experienced a 15% decline in sales over the past two years, primarily due to pressure from imported products and fluctuating raw material prices. This situation has been exacerbated by the pandemic and financial difficulties impacting major companies, including Sritex. In response, the government is taking action to prevent massive layoffs and ensure production continuity.

Airlangga added that the government will coordinate with the curators handling Sritex to discuss necessary measures. "Further discussions with the curators are needed. The legal process is ongoing, so we must be cautious in making decisions," explained Airlangga. This cautious approach is intended to ensure that any resolution considers the interests of all parties, particularly employees who rely on the industry for their livelihoods.

Worker Protection: Ensuring Employee Rights Amid Industrial Uncertainty

Minister of Manpower, Yassierli, emphasized that the government is committed to preventing any immediate layoffs. "We have instructed that the textile industry should continue its operations, and all employees should remain calm, as the government is committed to finding the best solution for them," he said.

Regarding labor rights, Yassierli stressed that the government is dedicated to ensuring that all employee entitlements are upheld, especially during times of uncertainty like this. The Manpower Ministry has even dispatched a Deputy Minister to Sritex to directly monitor conditions and confirm that workers' rights are safeguarded. “We aim to ensure workers receive their rights, and recent visits to Sritex have yielded positive feedback,” he added.

The government’s proactive steps highlight its concern for workers and its support for maintaining stability in the textile industry. Data from the Ministry of Manpower indicates that over 2 million workers are engaged in the textile and garment sectors in Indonesia. Any instability in this industry could affect not only workers' families but also the entire industrial ecosystem.

Developing Protective Strategies for the Textile Industry Against Global Competition

In the long term, the government plans to reduce dependence on imported products and enhance the competitiveness of local textile products. President Prabowo Subianto has also instructed relevant ministries to expedite the formulation of policies to protect the industry from an influx of imported textile goods, often sold at lower prices.

This strategic initiative aims to bolster the productivity of Indonesia’s textile industry, making it more competitive in the global market. According to the Ministry of Industry, Indonesia’s textile industry contributes over 6% to the national GDP, with export values exceeding $13 billion in 2023. However, global market pressure, especially from countries with lower production costs, presents ongoing challenges that must be addressed to sustain the growth of the national textile industry.

With the government's policies and support, it is expected that the textile industry can recover and play a more significant role in Indonesia’s economy.