Indonesia's wave of layoffs


  Recently, there have been reports that Indonesia has experienced a wave of layoffs, with about 60 companies conducting large-scale layoffs in the past two years, most of which are from the textile industry. The reason is that China Railway (中修) has carried out large-scale dumping of goods, further impacting Indonesia’s domestic industry. Taking the textile industry as an example, China Railway uses its strong industrial system to export large quantities of garments to Indonesia. These clothes are of better quality and lower price compared to locally produced Indonesian clothes, causing a huge blow to Indonesia’s textile industry, which local companies cannot compete with. Meanwhile, the Indonesian comprador government has been complicit; the Ministry of Industry amended regulations last May to relax restrictions on imported products, allowing China Railway to dump goods on a larger scale. According to official Indonesian data, in November last year, Chinese-made garments accounted for 42.69% of Indonesia’s imported garments! Bank Mandiri, Indonesia’s largest bank, found that from 2004 to June 2024, the total value of textiles imported from China may be twice the official data. Under the impact of China’s large-scale dumping, Indonesian textile companies have been laying off workers one after another. Just this March 1st, the giant Indonesian textile company Sri Rejeki Isman went bankrupt and laid off 10,000 workers! More than 60 other textile companies have also conducted large-scale layoffs. The workers who are laid off will face even more difficult lives in the future, and the main culprits are the Chinese Railway government and the Indonesian comprador government.

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Previously, Nigeria was also like this; Chinese manufacturers even counterfeit domestic-produced clothing and put Nigerian company labels on them. However, I don’t think I have published the related news article I wrote earlier (

https://www.voachinese.com/a/nigeria-traditional-textiles-threntened-by-chinese-imports-20201126/5678037.html