Indonesia Textiles Hit: Yarn steady, fabric fraying.

Indonesia's textile industry is facing a wave of layoffs and closures due to new trade regulations, according to industry leaders. The Indonesian Textile and Filament Yarn Producers Association (APSyFI) blames Regulation No. 8/2024 for exacerbating illegal imports and hurting domestic producers.

APSyFI claims the regulation allows easier manipulation by customs officials, leading to a rise in cheap, illegally imported textiles. This has resulted in at least 30 companies shutting down and over 13,800 job losses since May 2024. Industry leaders are urging the government to address the issue. They've proposed solutions like AI scanners for inspections and market protection measures, but these efforts have been met with resistance. The Ministry of Trade insists Regulation No. 8/2024 doesn't directly impact textile production and maintains oversight of imports.

Despite the challenges, the industry remains hopeful. Leaders are pushing for reforms to ensure a sustainable and competitive future for Indonesia's textile sector.