Agora Inc. (API), a leading textile company, experienced a significant 5.71% drop in its stock price during the pre-market trading session on Monday. This plunge is expected to be closely linked to the broader challenges facing the textile industry in Indonesia due to Trade Ministry Regulation No. 8/2024, which has eased the import of finished textile products into the country.
According to reports, around 60 textile companies are facing dire circumstances, including factory closures, layoffs, and temporary suspensions of operations. The Indonesian Textile Association (API) and the Indonesian Filament Yarn and Fiber Producers Association (APSyFI) have raised concerns about the detrimental impact of this regulation on the domestic textile industry, calling for its revision.
Vice Minister of Manpower Immanuel Ebenezer acknowledged receiving complaints from industry players and labor unions, highlighting the need for a revision of the controversial regulation. The government is expected to address the concerns of the textile sector and take necessary steps to protect domestic manufacturers from the influx of imported products.
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