Textile business players report that upstream industry segments are experiencing a sharp decline in production. As of 2025, a total of five textile factories have ceased operations and shut down entirely.
It is estimated that around 3,000 workers have been laid off, signaling that deindustrialization in the textile sector is indeed taking place.

The five companies that have stopped operating include:

• PT Polychem Indonesia in Karawang, textile manufacturer

• PT Polychem Indonesia in Tangerang

• PT Asia Pacific Fibers, a polyester fiber producer in Karawang

• PT Rayon Utama Makmur, part of the Sritex Group that manufactures rayon fibers

• PT Susilia Indah Synthetics Fiber Industries (Sulindafin), a producer of polyester fiber and yarn in Tangerang

“The closure of these five companies is due to severe losses caused by weak domestic sales. The flood of imported products sold at dumping prices, particularly ready-made fabric and yarn, is the main factor behind their shutdown,” stated the Secretary-General of the Indonesian Filament Fiber & Yarn Producers Association (APSyFI), Farhan Aqil Syauqi, in a written statement on Sunday (November 30, 2025).

He continued, “At present, six other factories are running at less than 50% capacity, and some are already operating on an on-and-off basis. Five polymerization machines have also stopped functioning altogether.”

Farhan warned that more textile factories may close in 2026 if the government fails to control and transparently disclose to the public which parties receive the largest import quotas—an issue that has led to the surge of imported products flooding the domestic market. He emphasized that the government should already possess this information, as all imported goods entering major ports are recorded in the customs system.

“The government can easily access the data. We are simply waiting for concrete action. Without corrective measures, another six companies will likely go bankrupt because they cannot sell their products domestically. Moreover, our members cannot plan next year’s production due to the lack of transparency regarding import quotas. Deindustrialization is truly happening,” he said.

He also expressed appreciation for the Ministry of Finance, which is committed to curbing illegal imports. The investigation into thrifting imports is believed to reveal fraudulent practices within the import trade system.

“In these thrifting import cases, it becomes clear who the importers are and who backs them. Law enforcement can dig deeper into who is causing state losses. We believe that the bureaucrats involved are already interconnected and well-organized,” Farhan concluded.