More than 12,000 textile workers laid off, says API chairman
More than 12,000 textile workers laid off, says API chairman
Adianto P. Simamora, The Jakarta Post, Jakarta
The Indonesian Textile Association (API) said on Monday that
more than 12,000 textile workers had been laid off due to a drop
in overseas demand triggered by the global economic slump.
API chairman Benny Soetrisno said that three textile companies
operating in Semarang, Central Java, had recently laid off about
12,000 workers, while some 800 workers were laid off in Bandung,
West Java.
"I've just received information this morning from Bandung that
about 800 textile workers were laid off," Benny told a media
briefing.
He said the three companies in Semarang had closed down their
factories.
Benny said the current situation was very difficult for the
textile industries to survive in, and added that if no immediate
action was taken, there could be more workers losing their jobs.
He did not elaborate further.
Textile products are one of the country's main non-oil and gas
exports, and the sector absorbs a huge number of workers.
"Many textile companies have cut production to about 70
percent of their total production capacity compared to an average
of 87 percent last year, due to sluggish (export) orders," he
said.
"Sluggish demand from main textile buyers and the influx of
new cheaper garment and textile products from China since August
have forced local producers to lower production in order to
survive during this difficult time," he said.
Indra Ibrahim, the API executive director, said earlier that
the country's 2001 textile exports would decline by 25 percent
from US$8.2 billion last year due to the economic slowdown in the
main U.S. market.
Meanwhile, Madi Rukasah, processing manager of PT Wistex in
Majalaya, West Java, said that textile and garment companies
operating in the Bandung and Majalaya areas had cut back on their
employees' working hours over the past two weeks to save costs
amid declining export demand.
"Many companies have cut workdays to five days a week from six
and shifts to one shift from two and even three shifts a day,"
said Madi.
The U.S., Europe and Japan account for about 45 percent of
Indonesia's textile exports, while the so-called "non-quota
countries" such as the Middle East, Latin American and African
countries, take the remaining 55 percent.