Textile Firm Asia Pacific Fibers Lays Off Employees at Indonesia's Cikarang Facility

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TEMPO.CO, Jakarta - Tunaryo, the Corporate Secretary of PT Asia Pacific Fibers Tbk., stated that the management had terminated employees at the chemical and fiber factories in Karawang, West Java. The factory had previously been temporarily shut down, and management is currently considering a permanent closure.

Tunaryo mentioned that most of the terminated workers at the Karawang factory were from non-core groups or were not in the main business line. However, he did not specify the exact number of employees affected by the layoffs. "The company has laid off the majority of employees at the Karawang factory, most of whom are in the non-core group," Tunaryo said in an information disclosure at the Indonesia Stock Exchange on Sunday, July 27, 2025.

In its 2024 annual report, the textile company POLY admitted to laying off 1,802 employees at its Karawang and Semarang factories. At that time, POLY had temporarily suspended operations at the polyester and fiber factory in Karawang in November 2024. Consequently, the operational capacity of the filament yarn factory in Semarang decreased, and it is currently operating at only 30 percent capacity.

Throughout 2024, POLY's sales dropped by 34.10%, from $288.55 million in 2023 to $190.15 million (around Rp1.3 trillion at an exchange rate of Rp 16,359). Revenue declined by 35.53 percent in the domestic market and 25.83 percent.

In the first quarter of 2025, POLY recorded revenue of $12.17 million, equivalent to Rp198 billion (at an exchange rate of Rp16,302 per US dollar). This amount decreased from revenue in the same period last year of $64.9 million, or around Rp1.06 trillion.

From January to March of 2025, POLY incurred a loss of $1.45 million (Rp 23.6 billion), compared to a profit of $687,629 (Rp 11 billion) the previous year.

Tunaryo also mentioned that the company submitted a restructuring proposal involving new investors to provide working capital. He said, "The goal is to inject funds for working capital needs and to upgrade the company's machines so that the company's products will be of higher quality and more competitive compared to similar products on the market."

Tunaryo stated that the Karawang factory could potentially be revived. He said that it could become operational again as long as it remains within the textile and textile product corridor or focuses on increasing the capacity and utilization of the Kaliwungu factory in Kendal.

However, if the Karawang factory were to permanently close, Tunaryo stated that it would lead to a decrease in sales of polyester staple fiber, polyester chips, and performance fabrics. He mentioned that management projected a 76 percent decrease in company sales from 2024 to 2025. However, he said that the company is still considering reviving the Karawang factory if the debt restructuring proposal is approved by the creditors.

POLY management previously stated that the company's business environment is currently unfavorable, both domestically and internationally. "The company will permanently close this production unit and revise its business projections based on the operation of the Kaliwungu-Kendal factory," the management said in a disclosure at the Indonesia Stock Exchange on Monday, July 21, 2025.

According to the management, the company's business environment is currently facing issues from abroad, such as global overcapacity, increased export tariffs to the United States, and high raw material costs. Domestically, meanwhile, POLY is confronted with the implementation of anti-dumping duties and the revision of import regulations that fall short of industry expectations. "Ambiguity in the implementation of anti-dumping duties and import regulation revisions that fall short of industry expectations have caused sluggish demand for industrial products," said the management.

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