Layoffs Potentially Occurring in Three Months, Textile and Plastics Industries Most Vulnerable
President of the Indonesian Confederation of Trade Unions (KSPI), Said Iqbal, has warned of the potential for a wave of layoffs in the next three months. This threat is expected to be greatest in the textile and textile products (TPT) sector, from yarn and fabric to polyester.
He stated that the warning is based on reports from trade unions in several companies that have begun discussing the possibility of workforce reductions. This situation is triggered by the impact of the conflict in the Middle East on the industry.
“But in reality, reports from KSPI members, not others, trade unions in companies, especially in the TPT industry sector, textiles and their derivatives. Yarn, fabric, polyester, and so on,” he said during a virtual press conference on Monday (4/5/2026), as reported by detikFinance.
The second sector threatened with layoffs is the plastics industry due to a surge in imported raw material prices. This industry faces pressure because raw materials cause production costs to soar along with the weakening of the rupiah against the US dollar.
The rise in plastic prices is said to impact the decline in public purchasing power, which ultimately pressures demand and could trigger layoffs in that sector.
“Then the plastics industry, because plastic raw material prices have risen sharply, making the industry struggle. Its raw materials are imports, imported polymers, many petrochemicals are imported. Once produced, imports mean buying with dollars, selling in the domestic market with rupiah, while the rupiah price plummets against the dollar, it’s a loss, that’s why plastic prices rise,” explained Said Iqbal.
“Now, if plastic prices rise by up to 50%, people’s purchasing power decreases. There are housewives who sell in ordinary markets wrapping with plastic, now using leaves. That’s plastic demand dropping. That’s a threat of layoffs in the plastics industry,” he added.
Further impacts could spill over to other industries like electronics and automotive, which heavily use plastic components. He hopes that tensions in the Middle East between Israel and the United States against Iran can soon subside.
“Likewise, the electronics industry could be affected. Hopefully the war can return to peace, resolved so that plastic prices can fall. But it’s not that easy, companies say, in three months to trade unions, electronics use plastic for frames. In automotive, fenders, some other components also use plastic,” he explained.
In addition, the cement sector is also facing pressure due to oversupply. Amid weakening demand due to the war, the entry of new factories instead tightens competition and drives workforce efficiency.
“Especially now in the atmosphere of war. Demand for cement decreases. Already oversupply, new factories are built then permits are given and start operating, cement demand drops due to reduced cement. Automatically, labour and worker efficiency occurs, yes, layoffs,” he said.
Said Iqbal stated that to date, workers have not received any official response from the government. He also mentioned that there are no plans for discussions regarding this mass layoff threat.