The Indonesia Textile Association (API) reported that the garment industry laid off 6,000 out of a total 1.5 million workers at the end of May, citing higher production costs and lower domestic sales. (GA Photo/Mohammad Defrizal)

Renewed Hope for Indonesia's Garment Industry: BKPM

BY :TABITA DIELA

NOVEMBER 06, 2015

Jakarta. Indonesian garment manufacturers are recruiting workers once again, after laying off thousands in the first half of this year, according to the Investment Coordinating Board, or BKPM.

TheĀ Indonesia Textile Association (API) reported that the garment industry laid off 6,000 out of a total 1.5 million workers at the end of May, citing higher production costs and lower domestic sales.

Despite a slowdown in the industry, Eco Smart, a local garment manufacturer based in Boyolali, Central Java, have recruited more than 7,500 workers since April and 1,421 in October.

BKPM has made it a priority to keep the industry afloat saying that investment in the textile industry has grown 25 percent to Rp 4.65 trillion ($343.26 million) from the same period a year earlier.

The board is working closely with labor-intensive companies to ensure that unemployment rates do not surge, BKPM chief Franky Sibarani said.

Indonesia's Central Statistic Agency (BPS) also reported on Thursday that the unemployment rate in Indonesia rose to 6.18 percent in August, meaning 7.6 million people of the country's 122 million work force were unemployed at the time. This is in comparison to 7.24 million people or 5.9 percent in the same period a year earlier.

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