Almost 36,000 jobs are at risk in Indonesia as more than 100 textiles and garment manufacturers are on the brink of collapse due to declining domestic demand. As Ade Sudrajat, Chairman, Indonesia Textile Association (API) points out, products manufactured two-three months ago still remain in warehouses. Small scale industries are the ones that are majorly affected as these hire about 360 workers on an average and sell their goods solely in the local market. Factories could not produce because of a lack of demand.

In April-June 2015, the Indonesian economy expanded at 4.67 per cent. This is the slowest in five years as people’s purchasing power dipped from lower commodity prices in the global market, and sluggish government and private investment. As per Central Statistics Agency data, as of February, about 7.45 million of Indonesia's working age adults are out of work, which is up by 300,000 people from the same period a year ago.

Sudrajat hopes that there will be a 40 per cent cut in electricity tariffs by the government, which would help the local manufacturers compete with imported textiles. He further urged the government to erect trade barriers for some textile imports to protect the local market.