Sinarberitanews.com, JAKARTA - The number of workers laid off and laid off in the footwear industry sector is far greater than what appears on the surface. There are more than 400 thousand workers affected. at least two big players of big brand buyers such as Nike and Adidas openly do mass layoffs.
.they are PT Shyang Yao Fung in Tangerang City, Adidas buyer and PT Victory Chingluh, Nike buyer at Kemis Market, Tangerang District, doing mass layoffs of 2,500 each and nearly 5,000 workers.
the reason is indeed different, PT Shyang Yao Fung because it will relocate the factory to Central Java, while PT Victory Chingluh there is a partial cancellation of the buyer's order due to the impact of co-19 and at the same time the factory relocation plan.
This shows the footwear industry is in trouble. Executive director of the Indonesian Footwear Association (Aprisindo) Firman Bakri, told CNBC Indonesia that the footwear sector had indeed been hit by the impact of the co-19 pandemic before Indonesia was hit by a pandemic. at least since February, when China was hit by a pandemic that affected the supply of raw materials resulting in an escalation in raw material prices of up to 5%.
After February the impact of the pandemic increasingly felt mainly in terms of domestic market demand and export disruptions. so that the impact of exports will be affected by canceling orders from buyers.
"Now around 40% of utilization is still helped by the export-oriented industry, until early May production remained, while the domestic market has stopped production and dismissed employees," he said.
Firman said that the effect was that many contract and training employees did not renew their contracts. In addition, employees began to be laid off and some had to be laid off.
"Accumulated from February to May there are 400 thousand workers affected by the co-19 pandemic," he said. (Timbul/Pas)