Chairman of the National Economic Council Luhut stated that Indonesia must protect its textile industry from the influx of Chinese export products while continuing to attract investment and create job opportunities. Despite facing increasing layoffs and global challenges, the textile industry remains a key economic driver, employing nearly 4 million workers and attracting large amounts of domestic and foreign investment. In 2024, foreign direct investment in this sector reached US$903 million, up 107% from the previous year, while domestic investment reached IDR 7 trillion. An international brand announced plans to triple its orders from Indonesia within three years, expected to create 100,000 new jobs. However, it also faces challenges such as land acquisition, environmental permit approvals, and wage policies. He emphasized that the government needs to strengthen monitoring of the influx of Chinese goods diverted to the Indonesian market due to US tariff increases. Despite the growth in industry investment, layoffs continue to increase. From January to May 2024, around 30 textile factories closed, resulting in 10,800 job losses. A think tank attributed the job losses to the influx of cheaper Chinese textile imports, which weakened local production.
Chairman of the National Economic Council Luhut stated that Indonesia must protect its textile industry from the influx of Chinese export products while continuing to attract investment and create job opportunities. Despite facing increasing layoffs and global challenges, the textile industry remains a key economic driver, employing nearly 4 million workers and attracting large amounts of domestic and foreign investment. In 2024, foreign direct investment in this sector reached US$903 million, up 107% from the previous year, while domestic investment reached IDR 7 trillion. An international brand announced plans to triple its orders from Indonesia within three years, expected to create 100,000 new jobs. However, it also faces challenges such as land acquisition, environmental permit approvals, and wage policies. He emphasized that the government needs to strengthen monitoring of the influx of Chinese goods diverted to the Indonesian market due to US tariff increases. Despite the growth in industry investment, layoffs continue to increase. From January to May 2024, around 30 textile factories closed, resulting in 10,800 job losses. A think tank attributed the job losses to the influx of cheaper Chinese textile imports, which weakened local production.