Manufacturing: Rising Layoffs Amid Import Policy Relaxation in Indonesia

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Manufacturing: Rising Layoffs Amid Import Policy Relaxation in Indonesia

Algo Research Team

Economics | Sep 02, 2024 | Views: 107

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Key Summary:

Labor-intensive manufacturing are seeing most layoffs.
The government has officially enacted Regulation of Permendag 8/2024
Significant discrepancies in import data Indonesia vs Chinese Trade Data

Labor-intensive manufacturing are seeing most layoffs. The Ministry of Industry (Kemenperin) reported a +43% increase in layoffs in textile industry after the implementation of Permendag 8/2024 on May 17, 2024.

Rising layoffs: Six textile factories have closed. Leading to layoffs of over 13,000 workers since the start of 2024. This is caused by higher imports, which increased from 136,360 tons in April 2024 to 194,870 tons in May 2024.

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