Luhut asks government to closely monitor Chinese goods

Luhut, chairman of the National Economic Council, said Indonesia must protect its textile industry from the influx of Chinese exports while continuing to attract investment and create jobs.Despite increased layoffs and global challenges, the textile industry remains a key economic driver, employing nearly 4 million workers and attracting significant domestic and foreign investment.2024 foreign direct investment in the sector amounted to $903 million, up 1,07% from the previous year, with domestic investment amounting to Rp7 trillion. One international brand has announced plans to triple orders from Indonesia in three years, which is expected to create 100,000 new jobs. But there are also challenges such as land acquisition, environmental permit approvals and wage policies, and he emphasized the need for the government to step up its monitoring of the shift towards an influx of Chinese goods into the Indonesian market due to higher tariffs in the United States see. Layoffs continue to increase despite the growth of investment in the industry, with some 30 textile factories closing between January and May 2024, leaving 10,800 people unemployed. The think tank blamed the job losses on the influx of cheaper Chinese textile imports, which weakened local production.