Indonesia’s textile and textile product industry grew nine per cent in 2022.

In the first quarter and the second quarter of 2022, the growth was 12 percent and 13 percent. However, in the third and fourth quarters, the quarter to quarter growth indicator has slowed down. The export market has weakened but on the other hand the domestic market has been flooded with imported goods, which has led to the closure of several factories.

The global crisis as a result of the impact of the Russian-Ukrainian war is being felt by the textile industry in Indonesia. Indonesia’s textile exports have dropped dramatically after the Russia-Ukraine war. The loss of this export market has made textile companies in Indonesia overstock. Because, on the other hand, the domestic market is not available since it is flooded with imported products. So this condition causes domestic textile products to go nowhere and the impact of which has been that textile companies in Indonesia are experience overstock. This has also caused textile companies to take policies to lay off their employees.

In just 16 days, more than 85,000 employees throughout Indonesia have been laid off. It is difficult to predict when the textile industry in Indonesia will recover from the current crisis caused by the war.