Jakarta, CNBC Indonesia - Small and medium-sized industry players\n(IKM) in the convection sector are facing heavy pressure due to a\ndecline in orders in recent times. This is also reflected in the\nIndustrial Confidence Index (IKI) value for April 2026 at 51.75, but the\ntextile sector is experiencing contraction.<\/p>\n
This situation is forcing many business players to carry out\nproduction efficiency amid domestic market uncertainty. This is\noccurring amid the dynamics of the national textile industry, which is\nundergoing contraction in April 2026. Although the garment subsector\nstill records relatively good performance, pressure from imported raw\nmaterials and price competition leaves IKM players in a vulnerable\nposition.<\/p>\n
Convection business players admit that the decline in orders directly\nimpacts production capacity, which has long been the backbone of their\nbusinesses. Adjustments are unavoidable.<\/p>\n
\u201cOf course. For example, normally an order is for 100 pieces, but now\nit could be 60, 50, or even half,\u201d said the General Chairman of the\nBandung Convection Entrepreneurs Association (IPKB), Nandi Herdiaman, to\nCNBC Indonesia on Wednesday (29\/4\/2026).<\/p>\n
This decline in orders not only affects production output but also\nworkforce planning. In normal conditions, production capacity is\nadjusted to the available workforce.<\/p>\n
However, now many business players are holding back on expansion and\neven reducing production activities to cut operational costs. This\nsituation creates a dilemma because on one hand, the business must\ncontinue to operate.<\/p>\n
\u201cSo if up to now we say we\u2019re closing, not yet, we\u2019re still holding\non, but holding on like this for a long time will drain savings too,\u201d he\nsaid.<\/p>\n
This pressure is increasingly felt due to unstable market demand.\nBusiness players face uncertainty in determining weekly or monthly\nproduction targets.<\/p>\n
On the other hand, business sustainability heavily depends on the\ndomestic market, which has been the main absorber of IKM products.\nWithout market protection, the pressure is expected to deepen.<\/p>\n
\u201cBecause what IKM produces, especially, is almost 95% for the\ndomestic market,\u201d he said.<\/p>\n
Competition with cheap imported products also poses a serious\nchallenge. Overseas products entering at lower prices are seen as\neroding the competitiveness of local products in the domestic\nmarket.<\/p>\n
This situation has business players hoping for policy interventions\nto maintain market balance, particularly in product distribution and\nimport control.<\/p>\n
\u201cWhat we\u2019re worried about is that the domestic market is still\ndominated by many cheap foreign products. This is a dilemma for us,\u201d\nsaid Nandi.<\/p>\n
Meanwhile, manufacturing industry activity is beginning to show signs\nof slowdown from the demand side. From the IKI release, there is a\ndecline in the new order index to 51.43 and production to 51.34.<\/p>\n
Amid this condition, the domestic market remains the main support.\nThe domestic demand index is recorded to have increased to 50.90, while\nexport-oriented industry performance is slowing with the index dropping\nto 52.28. This means the local market\u2019s absorption capacity is still\nstrong enough to sustain industrial activity.<\/p>\n
Several subsectors recorded contraction during this period. The\nbeverage, textile, wood and wood products, chemical, non-metallic\nmineral products, metal products, and other transport equipment\nindustries show weakening performance. Specifically for the textile\nindustry, pressure is occurring due to supply chain constraints from the\npetrochemical sector.<\/p>\n
The Ministry of Industry sees different dynamics at the subsector\nlevel. The ready-made clothing industry, especially in bonded zones, is\nconsidered to benefit from easier access to raw materials.<\/p>\n
However, on the other hand, the government highlights the need to\nregulate the flow of goods so as not to create pressure on domestic\nindustry players.<\/p>\n
\u201cWe hope that the flow of products entering and leaving the domestic\nmarket can be well regulated, because this is what is causing the\ntextile industry to face constraints,\u201d said the Ministry of Industry\nSpokesperson Febri Hendri Antoni Arief in his statement on Thursday\n(30\/4\/2026).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/textile-industry-contracts-convection-entrepreneurs-cry-out-over-remaining-50-orders-1777531940", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }