Expectations of the Textile Industry from the 2024 Election

BULETIN TEKSTIL.COM/Jakarta – The momentum of the 2024 General Election (Election) has the potential to benefit the textile and textile products (TPT) industry. After Dark Comes Light, a book written by Raden Ajeng Kartini, also known as RA Kartini, indicates that every individual will face adversity.

There will, however, be joyous times. This situation is likely to be a watershed moment for the country’s textile sector. During the COVID-19 epidemic, word of the Termination of Employment (PHK) spread across the country. The storm not only impacted technological firms, but also the textile and clothing (garment) industry.

On November 8, 2022, the Ministry of sector announced that the impacted workforce totaled 92,149 workers from the textile and garment industries and 22,500 employees from the footwear sector. According to reports obtained by the Ministry of Industry from a number of associations, the textile and textile product (TPT) and footwear industries are suffering a slowdown in performance. The cause for this is a decrease in utilization in the fiber business (20%), spinning (30%), weaving and knitting (50%), garment (50%), baby clothing (20-30%), and footwear (49%).

Some of these businesses have reduced their working hours to three to four days per week, rather than the typical seven. After drifting through the pandemic, the textile sector is now getting a breath of fresh air. Its spinoff businesses, such as t-shirts and screen printing, are robbing political contestation of its benefits ahead of the 2024 elections. The majority of orders are for legislative candidates’ t-shirts, flags, and banners.

Ignatius Warsito, Acting Director General of the Chemical, Pharmaceutical, and Textile Industries (IKFT) of the Ministry of Industry (Kemenperin), stated that political competition in 2024 will increase the performance of the Indonesian textile sector and its derivatives.

“With so many parties, our clothes are bound to stretch.” This also has an impact on the fabric and yarn upstream. “I am confident that this political year will be beneficial to the textile and textile product industries,” he added.

Warsito believes that campaign activities would be tremendous in this electoral year, but he did not specify how much growth the textile sector is expected to see. Furthermore, according to data from the General Election Commission (KPU), the overall number of voters for the 2024 election is expected to be 206 million. It is expected that around 110 million individuals between the ages of 20 and 44 would vote in the 2024 election.

“That will have an impact on (the production of) party shirts,” he said.

According to Ministry of Industry data, the TPT industry’s GDP growth rate in the first quarter of 2023 was 0.07 percent, down from 3.61 percent (yoy) the previous year. The TPT industry’s GDP contribution to national GDP in the first quarter of 2023 fell to 1.01% from 1.10% in the first quarter of 2022. The utilization of the textile sector also decreased in May 2023, falling to 67.59%. Similarly, the clothing industry’s utilization fell by 74.79%.

Nailul Huda, an economist at the Institute for Development of Economics and Finance (Indef), agrees that the textile business has raised its performance in every electoral year, whether it is general elections, presidential elections, or municipal elections. This is due to an increase in demand.

“The political event still requires clothing for the campaign, and this method is still used in the regions.” “As a result, the political years 2023 and 2024 may provide momentum to increase domestic demand for TPT products,” he added.

Aside from the TPT industry, the transportation, telecommunications, and food and beverage provision sectors are also affected. According to Huda, their demand often rises when a political year begins. However, there is worry that in major cities, campaign practices may change to digital campaigns utilizing social media accounts. “This will erode demand, but not significantly,” he said.

Redma Gita Wirawasta, General Chairperson of the Indonesian Filament Fiber and Yarn Association (APSyFI), stated that the election’s impact on the textile sector was obvious but yet minimal. Furthermore, industrial activity should be able to rise as a result of the election.

“However, we remain concerned that the increase will be insufficient to restore industry performance to normal levels, especially given the continued dominance of imported fabrics,” Redma added.

(red B-Teks/Ly)

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