The Head of the Labor Market Center at the Ministry of Manpower, Surya Lukita, stated that 3,000 textile workers in Garut have returned to work. They were rehired by a company that had previously carried out mass layoffs (PHK). According to Surya, this indicates that the manufacturing industry is beginning to recover after waves of layoffs since 2024.
“Alhamdulillah, the economy now looks like it’s starting to improve. From what we observe and monitor in the Labor Market, textile companies have begun rehiring (employees),” Surya said during a media briefing at the Ministry of Manpower’s Labor Market Center in Jakarta on Friday (September 26, 2025). “For example, just recently in Garut, I saw that they requested 3,000 people to return to work. So, the labor market is starting to come alive again,” he continued.
He added that sentiment in the industrial sector has also improved with the inflow of new investment into Indonesia. However, Surya did not disclose the name of the company that rehired the thousands of workers. He explained that layoffs in the manufacturing sector since 2024 were influenced by global geopolitical tensions. The Russia–Ukraine war and the Israel–Palestine conflict disrupted supply chains, putting pressure on Indonesia’s exports. “As a result, many footwear, garment, textile, and apparel factories carried out layoffs in early 2025,” he said.
Data from the Ministry of Manpower recorded 42,385 workers being laid off between January and June 2025. The textile sector was hit the hardest, including the closure of PT Sri Rejeki Isman Tbk (Sritex). Meanwhile, the Ministry of Industry reported that investment in the clothing industry in 2024 reached Rp 10.2 trillion—an increase of 124.9 percent compared to Rp 4.53 trillion in 2023.
Secretary General of the Indonesian Synthetic Fiber and Filament Yarn Producers Association (APSyFI), Farhan Aqil Syauqi, assessed that the new investment is still not enough to cover the industry’s losses. “The additional Rp 10.2 trillion in investment is indeed something to be grateful for, although it has yet to replace the investments that stopped, both in terms of production and employment absorption,” Farhan said.
Source : Kompas