Indonesia’s largest textile producers have been forced to stop their domestic textile manufacturing operations due to the country’s high unemployment rate.
The country’s textile sector has been a vital lifeline for many people, especially those living in rural areas.
The textile industry is highly dependent on the region’s natural resources, which can’t be replaced by imported products.
In the past decade, Indonesia’s cotton and textiles industries have been affected by a series of cyclones, which has caused a sharp decline in output.
While Indonesia’s economy is booming, the country still relies heavily on the textile industry for jobs and livelihoods.
In 2017, the government set a goal to double the textile production output by 2022, but the industry has been left with just 20 percent of its production.
While the textile sector remains the mainstay of the Indonesian economy, the textile workers and textile companies have been struggling to find new markets and attract investment, due to a lack of employment opportunities and poor wages.
Textiles and textile industry workers have also been the victims of workplace violence, including forced recruitment, threats and rape.
According to a report from the World Bank, the number of domestic textile jobs in Indonesia is currently less than 2 percent of the overall population, while the textile jobs that remain are concentrated in the cities.
The domestic textile sector in Indonesia currently employs around 1.8 million people, of which approximately 1.4 million are women.
However, as the number and number of textile jobs has been declining, the Indonesian textile industry has struggled to find additional sources of income.
The lack of an adequate domestic textile market and a high unemployment of domestic workers in the domestic textile industries has been the primary reason behind the textile industries’ decline in profitability.
Indonesia’s textile production is mainly produced by women.
A study published in 2017 found that in rural parts of Indonesia, around 80 percent of women who earn less than 50,000 rupiah per month are women, while women earning 60,000 to 100,000 are not.
The reason for this is that women in rural communities do not have the skills necessary to make clothes in a factory.
According the United Nations, the domestic industry accounts for nearly half of Indonesia’s gross domestic product.
However, with a large part of the domestic workforce employed in the textile factories, it can’t continue to compete with foreign imports.
According Indonesia’s Ministry of Commerce and Industry, domestic textile workers are mainly employed in garment factories in Jakarta and other cities.
However as domestic workers are not allowed to work in the garment factories, many of them work as seamstresses in the local garment industry.
According to the Ministry of Labor, the majority of domestic domestic workers earn about 300 rupie per month, and most of them are women and children.
As the domestic labor force is so small, the demand for domestic workers has also been declining.
According the government, domestic workers make up nearly 40 percent of domestic work in Indonesia, but because domestic work is not covered by the national minimum wage, it is difficult for domestic textile companies to attract foreign investors.
In an effort to attract more foreign investors, Indonesia is planning to establish a Domestic Trade Promotion Organization (DTPO) and to increase the number domestic workers allowed in the industry.
However due to restrictions and the lack of sufficient domestic workers, domestic garment manufacturers have been left unable to continue their production.
In an attempt to attract new foreign investors to the domestic garment industry, Indonesia has proposed an increase in the minimum wage and a new program to attract private investors to increase domestic production.
Source: Business Insider article