The phenomenon of mass layoffs that hit the textile and textile products (TPT) industry during the 2023–2024 period has unexpectedly triggered a side effect. Instead of collapsing, many former manufacturing workers have undergone a self-transformation by pioneering garment businesses at the small and medium industry (SMI) scale.
The General Chairman of the Berkarya Garment Entrepreneurs Association (IPKB), Nandi Herdiaman, revealed that severance pay has become the main driver for former laborers to purchase sewing machines and rent business locations. From being salaried employees, they have now transformed into business owners capable of absorbing new labor from their surrounding communities.
Data shows significant economic potential from this shifting pattern. Nandi illustrated that if 1,000 former workers transition into 300 new SMIs, it is estimated that more than 1,500 new jobs can be created. This optimism is driven by a strong domestic market with a population of 280 million, ensuring that the demand for clothing will remain sustainable.
However, hopes for the growth of the garment SMI sector are not without challenges. Competition with cheap imported products on e-commerce platforms remains a serious threat to the survival of home-based businesses. It is noted that about 30% of small-scale garment businesses went bankrupt due to the influx of foreign products in recent years.
Responding to this, IPKB urged the government to tighten trade supervision, especially regarding the implementation of Minister of Trade Regulation (Permendag) No. 19 of 2026. The association hopes the government will not only crack down on unfair market practices but also provide real support in the form of access to low-interest KUR (People's Business Credit) capital, digital marketing training, and product certification facilitation for nascent SMIs.
