Indonesia's Industry Minister Explains Garment Worker Layoffs

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, has addressed the issue of layoffs affecting 178 workers at PT Namnam Fashion Industries in Cimahi, West Java. He explained that the company has deactivated two of its three production facilities.

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They have three production facilities. Two of them are currently deactivated due to the company's business adjustments.

Kartasasmita stated that the decision to deactivate the facilities was due to a continuous decline in the company's income, as reflected in its balance sheet. He suggested this situation might be linked to the market's capacity to absorb the company's products, especially in export markets, necessitating business adjustments.

While one production facility remains operational, the minister assured that the government is monitoring its activities. He emphasized that the manufacturing sector, in general, continues to demonstrate its ability to generate employment opportunities. Data from the Central Statistics Agency (BPS) indicates a 0.09 percent growth in employment within the manufacturing sector, which, despite appearing small, represents a significant contribution given the sector's large size.

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So it might be related to market capacity, the absorption of their products in export markets. Therefore, they have to make adjustments.

The industrial processing sector contributes 13.53 percent to national employment, supporting approximately 148.19 million working individuals, according to BPS data.

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But if we talk about employment, we see that the report or release from BPS yesterday clearly stated that the manufacturing sector recorded employment growth of 0.09 percent. It may seem small, but it must be understood that the size is large.