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Textile firms to reduce workforce as Indonesia imposes pay and energy increases

04/12/2012
Indonesia’s textile industry has an announced that it will increase prices by 16% because of a rise in labour costs and in energy prices.

Secretary general of the Indonesia Textile Association (API), Ernovia Ismy, said an agreed increase in wages across all industries will affect textile manufacturers particularly severely because textiles is such a labour-intensive industry.

He warned that some textile producers will reduce their workforces as a result.

“Several companies that are members of the API have planned to lay off 2,000 employees, while overseas-owned textile producers have stated that they will reduce the number of employees in their firms by 20% in January 2013,” he told local media.

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