President of the Indonesian Confederation of Trade Unions (KSPI),\nSaid Iqbal, has warned of the potential for a wave of layoffs in the\nnext three months. This threat is expected to be greatest in the textile\nand textile products (TPT) sector, from yarn and fabric to\npolyester.<\/p>\n
He stated that the warning is based on reports from trade unions in\nseveral companies that have begun discussing the possibility of\nworkforce reductions. This situation is triggered by the impact of the\nconflict in the Middle East on the industry.<\/p>\n
\u201cBut in reality, reports from KSPI members, not others, trade unions\nin companies, especially in the TPT industry sector, textiles and their\nderivatives. Yarn, fabric, polyester, and so on,\u201d he said during a\nvirtual press conference on Monday (4\/5\/2026), as reported by\ndetikFinance.<\/p>\n
The second sector threatened with layoffs is the plastics industry\ndue to a surge in imported raw material prices. This industry faces\npressure because raw materials cause production costs to soar along with\nthe weakening of the rupiah against the US dollar.<\/p>\n
The rise in plastic prices is said to impact the decline in public\npurchasing power, which ultimately pressures demand and could trigger\nlayoffs in that sector.<\/p>\n
\u201cThen the plastics industry, because plastic raw material prices have\nrisen sharply, making the industry struggle. Its raw materials are\nimports, imported polymers, many petrochemicals are imported. Once\nproduced, imports mean buying with dollars, selling in the domestic\nmarket with rupiah, while the rupiah price plummets against the dollar,\nit\u2019s a loss, that\u2019s why plastic prices rise,\u201d explained Said Iqbal.<\/p>\n
\u201cNow, if plastic prices rise by up to 50%, people\u2019s purchasing power\ndecreases. There are housewives who sell in ordinary markets wrapping\nwith plastic, now using leaves. That\u2019s plastic demand dropping. That\u2019s a\nthreat of layoffs in the plastics industry,\u201d he added.<\/p>\n
Further impacts could spill over to other industries like electronics\nand automotive, which heavily use plastic components. He hopes that\ntensions in the Middle East between Israel and the United States against\nIran can soon subside.<\/p>\n
\u201cLikewise, the electronics industry could be affected. Hopefully the\nwar can return to peace, resolved so that plastic prices can fall. But\nit\u2019s not that easy, companies say, in three months to trade unions,\nelectronics use plastic for frames. In automotive, fenders, some other\ncomponents also use plastic,\u201d he explained.<\/p>\n
In addition, the cement sector is also facing pressure due to\noversupply. Amid weakening demand due to the war, the entry of new\nfactories instead tightens competition and drives workforce\nefficiency.<\/p>\n
\u201cEspecially now in the atmosphere of war. Demand for cement\ndecreases. Already oversupply, new factories are built then permits are\ngiven and start operating, cement demand drops due to reduced cement.\nAutomatically, labour and worker efficiency occurs, yes, layoffs,\u201d he\nsaid.<\/p>\n
Said Iqbal stated that to date, workers have not received any\nofficial response from the government. He also mentioned that there are\nno plans for discussions regarding this mass layoff threat.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/layoffs-potentially-occurring-in-three-months-textile-and-plastics-industries-most-vulnerable-1777913617", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }