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  • 2 years ago
Indonesia's textile industry is in big trouble. Tens of thousands of textile workers were laid off from January to June. The key reason is the massive influx of cheap Chinese products. Now Indonesia is planning countermeasures.

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00:00The site of these sewing machines is no longer as busy as usual.
00:05Currently only 5 workers operate it, but normally this small-sized garment industry has 50 workers.
00:12Sari is one of the lucky few who can still work here.
00:16For the mother of two, this means a lot.
00:22Of course I'm worried about being laid off. I have two children.
00:26I usually earn up to Rp 900,000 per week.
00:29Now it's at most Rp 200,000. Now it's very quiet when working.
00:39Indonesia's textile and garment industries are in deep trouble.
00:43Thousands of textile workers were laid off from January to June.
00:48One of the main causes is the influx of cheap Chinese textile products.
00:54Over 8,000 small and medium textile industry businesses registered in our network.
01:00Probably hundreds of thousands of workers are out of work, and that's only in West Java.
01:05This is worrying. There are too many cheap imported clothes that are killing the industry.
01:10Most of them are from China.
01:12We're not anti-import, but the question is, will the new import tariffs regulation be implemented, and how effective will it be?
01:21The Indonesian government is considering imposing tariffs of up to 200% on certain Chinese-made products
01:29to protect the domestic industry from dumping, triggered by Western countries' trade war with Beijing.
01:35Since 2019, 36 textile factories in Southeast Asia's largest economy have shut down operations.
01:42Others suffered massive layoffs, including this textile printing factory in West Java.
01:48It's one of the worst affected areas.
01:53The problem is, thousands of containers of ready-to-wear clothing are ready to enter the country.
01:59If those containers get here without safeguard regulation, it will be very dangerous.
02:05Increasing import tariffs is a must to protect industry and the domestic market.
02:10The textile industry will not survive in 2024 if there's no concrete intervention from the government.
02:19In doing so, the Indonesian government implemented an emergency exit plan,
02:23which led to a backlog of over 26,000 containers piling up to the sky at major ports in Jakarta and Surabaya.
02:31The government is also working to crack down on illegal imports, which has worsened the situation.
02:37However, many in the industry are concerned about the potential consequences of the new tariff plan.
02:44It's a very reactive unilateral move. It could trigger a backlash if China does retaliate.
02:52Moreover, imposing higher tariffs on only one country can be seen as a discrimination of trade.
02:59Don't forget that some of our clothing industry still needs Chinese raw textile materials.
03:07Many textile workers fear a trade war is coming.
03:10Ecin, one of 300 employees who lost her job at a textile factory in Bandung, West Java,
03:16has never seen such dire circumstances in her 18 years in the industry.
03:20She fears things will get worse before they get better.
03:27I've worked for 18 years, but when the company went bankrupt, I was not given my rights.
03:32Six months' salary and severance pay have not been paid.
03:36I used to get around 200 euros per month, but now even 50 euros is very difficult.
03:42I'm now living in a room with two people in this boarding house because I can't afford to pay.
03:49For now, Ecin is preparing food for a street stall to make ants' meat.
03:54The 40-year-old believes Indonesia's textile industry needs reform, even if such change comes too late for her.
04:06For more UN videos visit www.un.org

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