Jakarta (VNA) – Indonesia’s President Prabowo Subianto held a close-door meeting with several ministers on October 29 to discuss the current situation of Indonesia's textile industry, particularly focusing on textile giant Sri Rejeki Isman (Sritex).
Coordinating Minister for Economic Affairs Airlangga Hartarto said that the President aimed to gain insights into the textile industry's difficulties.
According to Airlangga, as an initial step, the government plans to ensure that Sritex can maintain its import-export activities.
The meeting also discussed emergency funding sources for Sritex after it was declared bankrupt by the Semarang Commercial Court.
Airlangga said that by keeping Sritex operational, jobs for the company's 50,000 workers can be preserved.
Recent survey results show that the industrial confidence index in September reached above 50 points, meaning that it is recovering positively. Indonesia's manufacturing sector secured a reading of 52.48 in September, up slightly from 52.40 in August.
Meanwhile, Febri Hendri Antoni Arie, spokesperson for Industry Ministry, said that the textile industry has not yet fully recovered from the influx of imports goods. Although the confidence index exceeded 50 points, the number of workers have been laid off in the industry is still high.
According to the Manpower Ministry, 42,863 individuals were laid off in Indonesia as of the end of July this year, with 22,356 of those coming from the processing industry, including textiles, garments, and footwear.
The Indonesian Filament Yarn and Fiber Producers Association (Apsyfi) noted that around 30 textile factories have shut down, causing 10,800 layoffs in the first five months of this year, compared to 7,200 layoffs in 2023./.
