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The industrial landscape in Indonesia, particularly the textile and textile products (TPT) sector, is grappling with an ongoing crisis marked by factory closures and a relentless wave of layoffs. The situation, exacerbated by various factors, including economic slowdowns in key export markets and the influx of imported products, has raised serious concerns about the well-being of workers and the sustainability of the industry.

Since the start of 2023, over 7,000 workers have lost their jobs, painting a grim picture of the challenges faced by the Indonesian textile sector. The Confederation of Indonesian Workers' Unions (KSPN) reports that more than 700 workers were laid off due to factory closures, with West Java bearing the brunt of this unfortunate trend.

President of KSPN, Ristadi, expressed deep concern over the rising number of layoffs in the national textile industry. He revealed that, since the beginning of 2023, 7,200 individuals have been affected across eight companies. However, a broader perspective, encompassing data from 2020, paints an even more alarming picture, with 56,976 layoffs reported from 36 companies located in regions such as Central Java, West Java, and Banten.

Several interconnected factors contribute to this wave of layoffs. Economic slowdowns in key export markets, particularly in Europe and the United States, have played a significant role. Additionally, the influx of imported products, geopolitical events such as the Russia-Ukraine war affecting global dynamics, and challenges in the supply chain for raw materials have compounded the industry's struggles.

Modernization of factory machines, while improving overall productivity and production quality, has increased the potential for layoffs. The weaving and garment industry sectors have witnessed a surge in the number of machines operated by a single worker, reducing the reliance on human labor.

In response to the crisis, the government is under mounting pressure to take swift and decisive actions. KSPN has called for measures such as restrictions on illegal imports, assistance with machine modernization, supportive banking policies, and the promotion of textile market expansion beyond the traditional US and EU markets.

To revive local market-oriented industries, it is crucial to halt illegal imports, impose restrictions on trade agreements, and provide assistance for machine modernization. For export-oriented industries, supportive tax policies, competitive energy prices, and a streamlined licensing process are deemed essential.

The crisis in the Indonesian textile industry demands urgent attention and concrete steps to prevent further deterioration. With collaborative efforts and support from the government, there is hope that the sector can recover, offering stable employment opportunities and contributing to the overall welfare of the community.

The challenges faced by the industry extend beyond mere industrial concerns, creating broad social impacts. A collective and cooperative effort from various stakeholders is imperative to overcome this challenge and ensure the sustainability of the industry and the well-being of workers in Indonesia.