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.

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. The recession can be said to have begun. If domestic demand revives the export market that is currently missing can be replaced and textile companies in the country can survive. The industry feels that suppression of imports, especially the flood of illegal imports of used clothes, can help textile enterprises to revive.

In the third quarter of 2022, Indonesia’s textile industry grew by eight per cent year on year.