The wave of layoffs that has hit the textile and garment industry in recent years has not necessarily led to rising unemployment. Amid the pressures faced by the sector, a new phenomenon has emerged: the rise of small and medium-sized industrial players (IKM) from the ranks of former factory workers.

General Chairman of the Indonesian Small and Medium Industrial Community Association (IPKB), Nandi Herdiaman, stated that the experience during the layoff waves of 2023–2024 showed that many workers chose to bounce back by building their own businesses. According to him, this proves that layoffs do not always mark the end of a career in the textile industry.

"This issue of layoffs is not new. In 2023–2024, we experienced a wave of layoffs for textile and garment factory workers, especially in West Java and Banten," Nandi said.

He explained that most of the laid-off workers used their severance pay as initial capital to open small-scale garment businesses. By purchasing two to three used sewing machines and renting simple shophouses, they were able to start businesses without having to rely on bank loans.

According to Nandi, this step serves as proof that severance pay can be utilized as productive capital that opens up new business opportunities while creating jobs.

"Most of the layoff victims did not just sit idle. They took their severance, bought two or three used sewing machines, rented a small shophouse, and started their own garment business," he said.

This phenomenon also shows a transformation in the role of former workers. From being factory workers receiving salaries, they have shifted into business owners capable of employing others.

"From laborers, they have risen to become IKM players. From previously being salaried, they are now the ones paying salaries to two to five people. This means that if layoffs happen again, the pattern will likely be the same. Those who are laid off will transition into becoming IKM or MSME players," Nandi said.

He assessed that the prospects for garment businesses remain wide open because they are supported by Indonesia's vast domestic market. With a population of approximately 280 million, the demand for clothing products will always exist, providing opportunities for local businesses to thrive.

Nandi added that several former workers affected by layoffs a few years ago have even succeeded in expanding their garment businesses. This demonstrates that the IKM sector can be a solution for absorbing labor while keeping textile industry activities moving.

"The market is there and it is very large. Indonesia has approximately 280 million people with clothing needs that cannot be postponed," he concluded.