Indonesian textile industry likely to lay off 120,000 workers
23/10/2008 16:03
The Indonesian Textile Association (API) has forecast around 120,000
temporary layoffs next year, due to a slowdown in the economy of the United
States, the Jakarta Post reported today.
"We estimate that 10 percent 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," the newspaper
today quoted API deputy chairman Ade Sudrajat Usman as saying.
He said
textile and apparel exports to the United States, which absorbed 33 percent of
Indonesia's total textile exports, dropped to US$2.12 billion during the first
half of 2008, compared to US$5.1 billion a year ago.
The Indonesian textile
and apparel industries consisted of 1, 090 companies and absorbed a total of 1.2
million workers.
Manufactures were trying to prevent layoffs resulting form
the decline in textile and apparel exports to the United States. API secretary
general Ernovian Ismy said "lower exports may force us reduce our production
capacity, but we can balance that by shifting employees' working
hours."
According to Ade, a textile manufacturer along with some electronic
and footwear manufacturers have already shut down their operations due to cuts
in orders amid the global economic slowdown.
Xinhua
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