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Indonesian textile industry may see more layoffs
Jun '15
Facing flat growth, Indonesian textile industry may see more layoffs unless the government takes some swift action to help the industry, a leading Indonesian daily has mentioned.
Several textile manufacturers in Bandung regency have already dismissed some workers and cut down working days from seven to three due to weak sales, according to the Indonesian Textile Association (API).
Rising costs, especially due to increase in electricity tariff and depreciation of Indonesian currency rupiah, had increased the cost of production as well as price of imported raw materials, API chairman Ade Sudrajat said on the sidelines of a textile exhibition in Jakarta.
The government needs to take swift action to help the textile industry, which otherwise may see closure of businesses or more layoffs, said Ade.
API had already submitted a report to the Ministry of Industry on the recent dismissal of several workers in textile factories across Java. In turn, the Ministry has called a special meeting to discuss problems faced by the domestic textile industry, the report mentioned. (RKS)

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