Industry association predicts massive job losses
23/10/2008
The Indonesian Textile Association (API) has forecast that around 120,000 working in the industry there could lose their jobs at the start of next year because of the slowdown in the world economy, but especially in the US, the main buyer of Indonesian textile products.
API deputy chairman, Ade Sudrajat Usman, told local media on October 22 that the decline in textile exports his organisation expects will lead to layoffs. He said textile and apparel exports to the United States dropped to US$2.12 billion during the first half of this year compared to $5.1 billion in the same period last year.
“We are estimating that 10% of the textile industry’s workers, or around 120,000 people, will probably be temporarily laid off by January next year if things keep getting worse,” he said.
He said the Indonesia has 1,090 registered textile and apparel manufacturers, with a combined workforce of 1.2 million people.
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