Agora Inc.'s stock experienced a significant 5.49% drop in 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.
According to reports, around 60 textile companies are facing dire circumstances, including factory closures, layoffs, and temporary suspensions of operations. The primary factor contributing to this crisis is the implementation of Trade Ministry Regulation No. 8/2024, which has reportedly eased the import of finished textile products into the country.
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. 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.
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