The Center for World Trade Studies (CWTS) UGM and the Faculty of Social and Political Sciences (FISIPOL) UGM held an Interactive Talk Show with the theme "Empowering Circular Economy through Industry and Community Engagement" on Thursday (8/12). The Talk Show took place at the West Atrium of FISIPOL UGM and was attended by four speakers: Prof. Dr. Edia Rahayuningsih (Head of Indonesia Natural Dye Institute/INDI UGM), Sri Wahyaningsih, BSc (Founder of Sanggar Anak Alam), Ir. Setyo Hastuti, M.P (Secretary of the Department of Cooperatives and SMEs of Yogyakarta), and Boy Chandra (Chairman of Guwosari Training Center). The Talk Show is part of the Circular Economy Forum (CEF) within the UGM International Forum for Inclusive and Sustainable Development in Southeast Asia, Latin America, and the Caribbean Region.

Moderated by Josh Handani, Chairman of the Indonesian Circular Economy Consortium (KESI), the Talk Show began with a presentation by Prof. Dr. Edia Rahayuningsih regarding the role of INDI UGM in reviving the use of natural dyes as a manifestation of local wisdom and cultural heritage. As a country rich in resources, Indonesia is encouraged to have a spirit of production based on the principles of the circular economy. Prof. Edia emphasized that natural dyes are not just products but a movement that requires synergy and collaboration from various stakeholders.

From the government perspective, Ir. Setyo Hastuti, M.P. emphasized the importance of the penta helix collaboration between the government, businesses, media, communities, and society in developing environmentally sustainable SMEs. To promote the development of SMEs in the Special Region of Yogyakarta, the management reform of SMEs is emphasized to include formalization and digital transformation.

The presentation was continued by Sri Wahyaningsih, BSc, who explained the education system of Sanggar Anak Alam from kindergarten to high school. By providing freedom for students to explore areas of interest, Sanggar Anak Alam emphasizes a practice-based and research-based curriculum to foster entrepreneurial skills and awareness of environmental sustainability.

The Talk Show concluded with Boy Chandra from the Guwosari Training Center (GSTC) presentation on the crucial role of waste pickers as environmental observers and the application of zero waste management in establishing GSTC. GSTC focuses on household waste management training with the principle that the waste that comes in must go out as an end product. In 2020, GSTC implemented principles aligned with the circular economy by developing waste-to-block technology.

Center for World Trade Studies (CWTS) UGM and the Faculty of Social and Political Sciences (FISIPOL) UGM held an Interactive Talk Show with the theme "Connecting Schools with the Adoption of Circular Economy" on Wednesday (7/12). The Talk Show took place at the West Atrium of FISIPOL UGM and was attended by four speakers: Julie B. Appelqvist (Head of Environmental Sector Cooperation, Embassy of Denmark in Indonesia), Drs. Muthoin, M.Si (Head of Agency for Regional Development of Salatiga), Dr. Nurhadi, S.Sos, M.Si. (Lecturer at the Department of Social Development and Welfare, FISIPOL UGM), and Dr. Junita Widiati Arfani (Coordinator of IGPA). The Talk Show is part of the Circular Economy Forum (CEF) within the UGM International Forum for Inclusive and Sustainable Development in Southeast Asia, Latin America, and the Caribbean Region.

Moderated by Suci Lestari Yuana, MA, lecturer at the Department of International Relations, FISIPOL UGM, the Talk Show began with a presentation by Julie B. Appelqvist on the development of the circular economy in Copenhagen, Denmark. Julie shared several strategies for promoting the circular economy at the primary education level, such as giving students the title of "waste heroes," initiating the concept of waste-free schools and modifying the curriculum to focus on practical application. Implementing the circular economy in the education environment will also be supported by policies and collaboration from local governments.

Representing the Deputy Mayor of Salatiga, Drs. Muthoin, M. Si, the Head of the Agency for Regional Development of Salatiga, discussed Salatiga's efforts to address the impacts of the pandemic through community economic recovery and waste management. Several practices aligned with the circular economy can be found in farmers' utilization of food waste and washing water as liquid fertilizer for farmers in Salatiga. In addition, Salatiga plans to allocate local government budgets to support green schools and the establishment of waste banks in each neighborhood (RW).

From an academic perspective, Dr. Nurhadi, S.Sos, M.Si emphasized the important role of education in instilling a culture of the circular economy. Dr. Nurhadi highlighted three functions of universities in maximizing this role: the campaign function, the research and development function, and the advocacy function.

The Talk Show continued with a presentation by Dr. Junita regarding the objectives and activities of IGPA or the Indonesia Green Principal Award. As a program supporting elementary and secondary school principals, IGPA is designed to institutionalize the practices and principles of the circular economy among children from an early age. IGPA has been held since early 2022 with the collaboration among educational institutions, research bodies, and industries and has participated by 33 school principals in two training cycles.

The Talk Show concluded with the announcement of the release of a book written by participating school principals in IGPA titled "Rediscovering the Pearl of Sustainability" and the presentation of recognition certificates to several schools. The recognition certificates were divided into four categories. First, the Knowledge Co-Production category was awarded to Aisyiyah Unggulan Gemolong Elementary School and Muhammadiyah Ketanggungan Elementary School. Second, the Outreach Program category was awarded to Muhammadiyah Program Unggulan Khusus Kottabarat Surakarta Elementary School and Muhammadiyah 2 Alternatif Kota Magelang Elementary School. Third, the Curriculum Design/Adoption category was awarded to Muhammadiyah Sudagaran and MI Muhammadiyah Ajibarang. Fourth, the Partnership Building category was awarded to Muhammadiyah Plus Salatiga Elementary School.

Centre for World Trade Studies (CWTS) UGM and the Faculty of Social and Political Sciences (FISIPOL) UGM organized the Forum on Sustainable Development Policy, Circular Economy, and Industrial Transformation on Tuesday (6/12). As part of the UGM International Forum for Inclusive and Sustainable Development in Southeast Asia, Latin America, and the Caribbean Region, this forum aims to generate policy proposals on trade and industrial transformation based on the circular economy through multi-stakeholder dialogues. The forum participants at the UGM Central Building include WTO delegates, national and local governments, academicians, local communities, and businesses. 

The Policy Forum was opened by Dr. Wawan Mas'udi, Dean of FISIPOL UGM, and Dr. Riza Noer Arfani, Head of CWTS UGM. Dr. Wawan and Dr. Riza emphasized the importance of learning from the community as initiators of the circular economy in formulating policies. "There is no need for overly theoretical frameworks, but we can learn from grassroots initiatives," said Dr. Wawan. Together with Dr. Poppy Sulistyaning Winanti, Vice Dean for Academic and Student Affairs at FISIPOL UGM, Dr. Riza facilitated the first session of discussions, featuring presentations from Dr. Werner Zdouc (Director of the Knowledge and Information Management, Academic Outreach and WTO Chairs Programme Division of the WTO), H.E. Dandy Iswara (Deputy Permanent Representative of the Republic of Indonesia II in Geneva/Ambassador), Dr. M. Pramono Hadi, M.Sc. (Head of the Center for Environmental Studies at UGM), and Prof. Dr. Catur Sugiyanto, MA (Head of the Center for Economic Democracy Studies at UGM).

In his speech, Dr. Werner Zdouc underlined the importance of the circular economy in replacing the traditional economy that exploits resources and harms the environment. In the context of circular economy development in ASEAN, Latin America, and the Caribbean (SEA-LAC) countries, Dr. Werner mentioned the urgency of addressing several issues, such as the definition and classification of end-of-life products, conformity assessment procedures, licensing, trade-related issues, and capacity building related to trade. It is also essential for SEA-LAC governments to not only promote a circular economy among business stakeholders but also raise consumer awareness and engage civil society in sustainable consumption practices.

Continuing from Dr. Werner, H.E. Dandy Iswara highlighted Indonesia's interest in cooperating to implement COP26 and the Paris Agreement amidst significant population growth. Indonesia has several targets, including implementing the circular economy to reduce emissions and sustainable fisheries targets. H.E. Dandy also emphasized the need for national and international collaboration to achieve effective and equitable implementation of the circular economy for each country.

Representing the academic community, Dr. M. Pramono Hadi, M.Sc., highlighted the potential realization of the circular economy through increased forest role in carbon sequestration. Dr. Pramono identified five key sectors that need attention in low-carbon development planning: forestry, agriculture, energy and transportation, industry, and waste and garbage. Besides forests, the circular economy can also be applied in developing dairy farming businesses. Prof. Catur Sugiyanto, MA, stressed that institutional improvement, technology, and support are pivotal in developing micro, small, and medium-sized enterprises (MSMEs) that contribute to the circular economy.

The event continued with a policy formulation session, where representatives from regional authorities, communities, and companies exchanged ideas and shared their sector-specific policies and practices. Various interesting issues emerged, such as priorities between mindset change and profit-based approaches, characteristics and availability of space in each region, recycling monitoring and evaluation issues, challenges in committing to circular economy initiatives, and concrete strategies that can be implemented through cross-sector synergies.

The Policy Forum concluded with a presentation by Prof. Daniel C. Esty from Yale University. After appreciating the outcomes of the G20 Indonesia and placing hope in Indonesia's leadership in ASEAN in 2023 in his remarks, Prof. Daniel emphasized three crucial elements in implementing the circular economy in Indonesia. First, there is a need to improve and strengthen policy frameworks at the global, national, and sub-national levels. Second, there is a need for a shift in business norms, mindset, and facilitation in financial and trade aspects directed toward climate action. Lastly, a social movement from all segments of society and the government is necessary to drive the transition from a linear to a circular economy.

In the end, the Policy Forum agreed to accommodate the formulation of circular economy regulations that address various aspirations. Some of the conclusions reached include (1) the establishment of regulations that are not merely top-down and minimally supervised but accompanied by multi-sector alternatives; (2) increased research on intangible aspects such as lifestyle patterns; (3) the creation of a flowchart of circular economy solutions that maximize the elements of customs, religion, education, culture, law, and local economy. The agreement is expected to be material for the CWTS UGM policy roadshow in early 2023, initially focused on the KARTAMANTUL region (Yogyakarta City, Sleman Regency, and Bantul Regency).

Mahasaraswati University Denpasar (UNMAS) Business Incubator (INBIS), Indonesian Young Entrepreneurs Association for Higher Education (HIPMI PT) UNMAS, and the Center for World Trade Studies at Gadjah Mada University (CWTS UGM) held the Sarasehan* Indonesian Economic Democracy (SARDEIN) on Friday (14/4). This SARDEIN session was held at Mahasaraswati University in Denpasar, Bali, with the theme "Projecting the Importance of Local MSMEs in National Economic Equality."

The event was opened with the welcoming dance "Sekar Jagat," followed by remarks from UNMAS and CWTS UGM representatives. Opening remarks by Vice Chancellor III UNMAS, I Komang Budiarta, S.Pd., M.Pd., M.Hum, expressed hope that the quality of MSMEs, especially in Denpasar, would improve as a result of the SARDEIN discussion. Dr. Riza Noer Arfani, Head of CWTS UGM, underlined the importance of collaboration between MSMEs, academics, and policymakers in encouraging the competitiveness of MSMEs in the international market. Representing the Suryakanta Institute, Maj. Gen. TNI (Purn.) IGK Manila, S.I.P. then welcomed the participants and assistants. Further, he motivated students to care more about the development of MSMEs.

Moderated by Putu Desi Anggerina Hikmaharyanti, M. Hum, the session continued with the Head of the Denpasar City Cooperatives and MSME Office, Dr. I Dewa Made Agung, SE., M.Sc  presenting examples of Denpasar City Government’s various MSME development practices. Some government efforts, including the creation of the KUBALI.com website to enhance MSME capital, an e-catalogue to increase MSME market access, a youth economic creativity festival “D'Youth Fest,” Denpasar Festival, and the MSME Actors Exhibition. Denpasar’s government also expects growth in cooperation for approaching MSME development problems, especially in promotion and marketing.

Head of the Buleleng Regency Tourism Village Network, Jero Mangku Made Ariawan, STT.PAR. MBA raised various circular economic activities in the Tourism Village of Buleleng Regency, Bali. Jero emphasized the importance of practical discussions and directions for farmers and MSME actors, who often do not specialize in a theoretical approach. By exploiting the potential of the location and culture, UMKM Tourism Villages in Buleleng Regency are advancing the arts, agriculture, and snack food sectors.

Continuing the discussion, the Head of INBIS UNMAS Denpasar, Daniel Manek, S.Fil., SM., MM, shared various experiences of MSME-themed competitions which students at UNMAS Denpasar attended to advance and develop student skills in the MSME field. Apart from the competition, Daniel also encourages skill development through collaboration like the one between UNMAS and CWTS UGM.

Furthermore, the Head of Section 1 of the Denpasar City HIPMI Branch Management Body (BPC), I Putu Hendra Arimbawa, SE., conveyed the great potential of Balinese MSME products and the relatively high potential of the MSME market in Indonesia. I Putu Hendra emphasized the importance of strengthening the MSME export-import sector to advance the Indonesian economy.

After the Question-and-Answer session, SARDEIN was closed by signing a Cooperation Agreement (PKS) between CWTS UGM and INBIS UNMAS on the local MSME empowerment program to create a sustainable, just, and resilient economy. This collaboration between CWTS UGM and universities in the n-helix scheme is oriented toward research, curriculum development, training, and policy advocacy.

* Sarasehan (in Bahasa) is a semi-formal discussion between experts and audiences on certain issues.

On Sunday (12/03), CWTS UGM collaborated with the Suryakanta Institute and Sumberharjo Green Tourism Exploration (JWHS) to deliver Volume 3 of the Sarasehan* Indonesian Economic Democracy (SARDEIN). This Sarasehan was held in Sumberharjo Village, Yogyakarta, with the theme "Vision of the Indonesian Circular Economy: Where is the Position of Villages and Local Communities?". Discussions were attended by local policy stakeholders of the Special Region of Yogyakarta (DIY), as well as practitioners and academics. Volume 3 of SARDEIN was also used to generate momentum for launching a book compiled by CWTS UGM and circular economic experts from various fields.

The SARDEIN workshop commenced with Klero Hamlet, Sriwidodo, welcoming the speakers and presenters to the Sumber Budhaya Building, which is said to hold historical significance for the people of Sumberharjo. Remarks were continued by the Head of CWTS UGM, Dr. Riza Noer Arfani, who identified the purpose of SARDEIN as a forum for discussion and knowledge dissemination, especially learning about circular economy practices at a local level context by involving various elements of society. During the event, Dr. Riza officially launched a book titled "Circular Economy in Universal Ideas and Local Practices" as CWTS UGM's contribution to developing a circular economy in 10 potential Indonesian sectors.

The Head of Sumberharjo Urban Village, Kurniawan Widiyanto, S.E, started discussions by highlighting that the village's 3R system (Reduce, Reuse, and Recycle) has not been maximally implemented. Kurniawan emphasized the importance of collaboration between the local government, university academics, the community, and local industry to campaign for circular economic practices at the sub-district and village levels, such as in Sumberharjo.

Director of the Independent Study and Administration Institute, Agus Hartono, S.S., discussed the problem of waste, which remains a long-term burden for Yogyakarta. Agus shared his belief that the government must maintain a firm approach toward managing waste with local communities and commercial industry. Agus further elaborated that companies should design products made from materials that are easy for consumers to process.

Ishadi Zayid, S.H., Head of the Sleman Regency Tourism Office, raised the environmental sustainability aspect of DIY’s provincial tourism sector as a topic for discussion. Ishadi expressed the commitment of the Sleman Tourism Office to developing community-based tourism that does not cause harm to the environment or conflict with the socio-cultural aspects of local communities. This commitment is manifested in the SAPTA PESONA campaign: Security, Orderly, Cleanliness, Coolness, Beauty, Friendliness, and Memories.

Representing the DIY Cooperatives and Small-Medium Enterprises (UKM) Office, the Head of the Cooperative and SME Entrepreneurship Services Division, Wisnu Harmawan, S.P., MT. said that 90% of DIY SMEs are still constrained in developing environmentally sustainable businesses due to a lack of financial support and guidance. Furthermore, based on European countries' rejection of DIY-based SME products, Wisnu conveyed the importance of pushing for environmental sustainability certification to expand these SME products into international markets.

SARDEIN Volume 3 was closed by Rizky Alif Alvian, MIR., CWTS UGM researcher and editor of the book "Circular Economy in Universal Ideas and Local Practices," which underlined the book's findings related to four circular economy trends visible in Indonesia. These trends include 1) circular economy practices driven from above (e.g., governments or international organizations); 2) practices driven from below (e.g., society and community); 3) potential production process improvement; 4) potential for policy making at the industrial level.

* Sarasehan (in Bahasa) is a semi-formal discussion between experts and audiences on certain issues. 

Center for World Trade Studies (CWTS) UGM, together with the Suryakanta Institute, and  Sociology Student Families (KMS), held Volume 2 of the Sarasehan* of Indonesian Economic Democracy (SARDEIN) on February, 28th 2023. This event, held in Fisipol UGM’s East Seminar room, carried the theme of “Improving Job Creation Regulations in National Investment Projections”. The discussion was attended by guest speakers Dr. Zainal Arifin Mochtar, Dr. Rangga Almahendra, and Ardy Syihab, with the discussion guided by Head of CWTS UGM, Dr. Riza Noer Arfani.

Dr. Zainal Arifin Mochtar, both a legal expert and lecturer at UGM’s Faculty of Law, said that there is currently a weakening of oversight towards the Indonesian government. Autocratic legalism was cited as an observable symptom of the lapse in political and legal oversight. In addition to Job Creation regulations, Dr. Zainal also conveyed the importance of monitoring the formulation of new regulations because there remains the potential for undesirable precedents, which would hinder the progress of Indonesia’s democratic legal and political systems. A key point of the presentation was that while increased levels of investment and economic progress are important for Indonesia, they should not be pursued in a way that prevents the advancement of  democracy.

Discussions continued with Dr. Rangga Almahendra, lecturer at UGM’s Faculty of Business and Economics, underlining the increasing prevalence of uncertainty caused by Jo Creation regulations. Continuing, Dr. Rangga explained that because Indonesia’s economic foundation is fragile and reliant on other countries, the government should focus on its improvement.  Because of the importance of  the Job Creation  regulations it is vital that they are reviewed to ensure an increase in employment opportunities, rather than serving only  the interests of employers.

The positions shared by Dr. Zainal and Dr. Rangga were endorsed by Ardy Syihab, who represented Merdeka Sejahtera Union (Semesta). Ardy made a point of rejecting a number of items from the Job Creation regulations that increase uncertainty for, or could potentially harm, Indonesia's workforce. Examples included regulations regarding layoffs, long leave, and the increasing openness of labor positions for foreign workers. In line with the preceding discussion, Ardy also emphasized the importance of questioning who will benefit from the accelerating levels of investment into Indonesia. In particular, Ardy highlighted that without appropriate regulation, the wealth created by this investment would likely not be enjoyed by society at large, instead leaving workers more disadvantaged.

* Sarasehan (in Bahasa) is a semi-formal type of discussion between experts and audiences upon certain issues. 

Currently, the implementation of circular economy has gained more attention in Indonesia.  In fact, Indonesia has incorporated the circular economy concept into the vision and development strategy of the five priority sectors in Indonesia's 2020-2024 National Medium-Term Development Plan (RPJM). The implementation of circular economy aims to balance economic benefits with environmental sustainability. 

In advancing the circular economy, Indonesia Circular Economy Consortium (KESI), affiliated with the UGM Center for World Trade Studies (CWTS) aims to boost circular economy-based SMEs, communities, and institutions based on local wisdom and knowledge. Currently, KESI has more than 20 members in Yogyakarta, Bali, and other regions in Indonesia, such as Rumijo Eco Indonesia, Sekolah Sampah Renggas Trengginas, and Sekolah Anak Sanggar Alam (SALAM). In  December 2022, KESI was also actively involved in organizing the Circular Economy Expo, which was attended by more than 50 participants from industry, community, and education sectors.

After developing and strengthening the consortium network, KESI held its routine meeting on 28 January 2023, at the PSPD UGM Office in which KESI Secretariat is also located. This meeting was KESI's initial milestone in reflecting on its commitment to realizing a sustainable, circular economy for its members. In this meeting, KESI members discussed the opportunities and challenges of implementing a circular economy in various sectors, particularly in SMEs and community sectors.

As a follow-up to this discussion in the next few months, KESI will soon organize skills, management, and marketing training classes for its members, and then it will be opened for the public. This program is expected to be a key solution to the problems of MSMEs that have limited access to upgrade their skills, management, and marketing proficiency. Furthermore, this training program aims to accommodate the vast range of participants, including training that is accessible to everyone, not just to KESI members. Thus, KESI will continue to be committed to implement circular economy practice based on collaboration and empowerment for all levels of society.

It has been a long time since the Special Region of Yogyakarta has faced the waste management problem. A bulk of the budget has been allocated to carry out waste management in this region, yet implementing well-operated waste management is still a far-finish line to be accomplished. As the existing reality so far, the response towards the waste management problem is based on short-term solutions namely opening and expanding dump fields and prohibiting inorganic waste. Nevertheless, to what extent are those solutions able to endure when the waste relatively increases? 

Concerning the existing conditions, waste management in Yogyakarta should be handled through a cross-sector approach. Waste management should involve various stakeholders such as industry sector, community, and government. 

Boy Chandra, the initiator of Guwosari Training Center (GSTC), thought that integration in waste management in Yogyakarta should be deepened. Interestingly, increasing waste volume in Yogyakarta is not a ‘problem’, Boy argued. Waste management-based industries are able to maximize their production capacity in the middle of expanding the demand for recycled-originated products. Boy mentioned several ideas regarding the integration and diversification strategy in managing waste.

First, cross-sector cooperation in waste management is imperative to protect the environment and benefit all entities around the waste management ecosystem. It means that the “One Village, One Waste Management System” policy to create end-products is such a significant step in the sub-district. Hence, the village becomes a first-hand entity in controlling waste flow within the local community. That policy can be commenced by raising the local community’s awareness about the importance of waste governance and creating community-powered waste management in the next step to go.

Second, beside the need to deepen multi-sector coordination, community-powered waste management should agree on the use of diversification or specialization strategy, based on types of waste that are cycled by the advanced waste recycling industry. This approach is expected to encourage collaboration between waste recycling industries and avoid unhealthy competition. Furthermore, the diversification approach will easily map the potential outputs of the waste recycling industry in Yogyakarta.

Tourism Awareness Group (or so-called "Pokdarwis" in Bahasa) is a community-powered group that focuses on energizing the village's potential in the tourism sector. Pokdarwis of Sumber Sumilir is a Tourism Awareness Group based in Sumberharjo Village, Prambanan Sub-district, Sleman Regency. This village is well-known for its two tourist destinations一Teletubbies Hill and Domes-shaped house一beside the lovely scenery because of the expanse of rice fields and greenery. 

By setting a mission to reactivate tourism in this village that has been in a downturn caused by the pandemic for two years, Pokdarwis of Sumber Sumilir chooses a progressive approach accommodating friendly policy towards the environment. In doing so, Pokdarwis put the priority on community empowerment approach to rectify the existing environmental condition, hoping that it will attract tourists to come. That approach is assessed as a significant step in addressing unwell-managed waste.

Regarding that environmental issue, Pokdarwis of Sumber Sumilir precisely re-ignited tourism activities in Sumberharjo Village by upholding the environmental-motivated movement initiated by Andy Purnawan. Andy is a 'creativepreneur' specializing in a leather craft named "Kenandy." Kenandy steadily strengthens the circular economy vision by becoming a member of the Indonesia Consortium for Circular Economy (ICCE). Andy argued that the spirit of protecting nature has to be integrated with the community empowerment agenda. 

Lack of waste management and environmental education in this village, Andy aims to improve these conditions. Tourism and a good environment are two things that should bolster hand-in-hand, Andy thinks. Therefore, Andy envisions that the tourist attractions in the Sumberharjo Village will be based on ecotourism一 a concept that combining local wisdom of rural life with natural tourist attractions. In general, the concept of ecotourism will be packaged through “Clean Village” activities.

Simultaneously, to achieve a better situation of tourism in Sumberharjo Village, Pokdarwis, presided over by Andy, has initiated concrete actions involving 18 sub-village in Sumberharjo in regard to collecting the waste by its types. Collaborating with Rapel Indonesia, this action has successfully launched three waste banks in Sumberharjo for the past four months, namely Cincing Jarik, Puspa, and Brilian Teletubbies.

Cincing Jarik, one of the excellent precedents of the bank of waste in Sumberharjo, has been running its business for the last three months. This waste bank consists of 10-12 households as its members. Every single member household in this waste bank is responsible for classifying wastes by their types on the level of family basis before storing them in a collecting point each month.

Beyond existing banks of waste, Andy and his team, on December 21st, 2022, also massively held a seminar about classifying inorganic waste in Sengir Sub-village. Marta Yenny, the representative of Rapel Indonesia taking a role as speaker, underlined that the bank of waste and its system will directly support circular economy practices to realize a cleaner environment and healthier people, exceedingly Sumberharjo is identified as a tourism village. To conclude, Andy also reaffirmed that this so-far action will get enough attention from various stakeholders to empower the tourism sector in Sumberharjo in the context of a post-pandemic recovery agenda.

The surge of inflation and economic crisis potential in many countries significantly affect the financial sustainability of the garment and textile industry in Indonesia. The once blossoming industries in the 1990s have recently suffered global economic consequences of COVID-19. Alas, the unavoided situation propels the garment and textile industry to implement mass layoffs. 

Garment and textile industry are correlated, yet the focus of each industry differs. While the garment industry focuses on manufacturing items of clothing, the textile industry focuses on producing, processing, and manufacturing of fabrics. In 2021, Indonesian textile industry became a labor-intensive industry with up to 1,4 million workers.

The Increasing Number of Layoffs

The mass layoffs in the garment and textile industry have occurred in various regions in Indonesia. The Executive Director of Indonesian Footwear Association (Aprisindo) Firman Bakrie mentioned that the amount of orders for export has, in fact, been declining since July 2022. The late gathering of data after export makes the garment and textile industry still seem to be growing when the reality proves otherwise. This is also the reason for the delayed realization of the mass layoff that is currently happening.   

This phenomenon also occurs in Subang, West Java, in which the Head of Manpower Agency (Disnakertrans) of Subang Yenni Nuraeni revealed the existence of 10.000 fired workers from 25 garment factories in Subang. The spokesperson of the Textile Business Organization in Subang (PPTPJB) Sariat Arifia also stated that companies have reduced their workforce by up to 50%. Moreover, data from PPTPJB shows that the closure of 18 garment factories in West Java caused 90.000 job losses. Based on a survey by the Central Bureau of Statistics (BPS), there is a diminution of the textile industry workforce from 1,13 million to 1,08 million in August 2022. 

The Cause of Mass Layoffs

The mass layoffs in the garment and textile industry is prompted by one main issue: the decreasing export demand. According to the Deputy of Apindo Workforce Division Aloysius Santoso, the demand for textile and garment products from the United States and Europe have diminished significantly by as much as 50% until mid-2023. The surging prices of basic goods drives the society to increase their savings by reducing expenditures on garment and textile products. In consequence, there has been an excessive supply of garment and textile products because the products are not fully absorbed by the market.

Furthermore, the COVID-19 related regulation to restrain cargo ships mobility also impinge the process of garment and textile products export. The regulation delayed the arrival time of garment and textile products, which lowered new demands. 

The Role of the Indonesian Government

The escalating number of mass layoffs in the garment and textile industry has righteously caught the Indonesian government’s attention. Hence, the government should do in depth research and calculation before implementing the policies to prevent further layoffs. Febrio Kacaribu mentioned that the aggregate growth of the textile and garment industry is still considered well so the government has to thoroughly investigate the developing issues of mass layoffs.

Not merely affecting the garment and textile industry, this issue urges the government to implement cautious approach and policies. Vice Chairman of Indonesia Parliament (DPR) Abdul Muhaimin Iskandar reiterated the need for the government’s concern wherein the layoffs in the garment and textile industry may impact other industries as well, particularly during the economic crisis that is predicted to happen next year. He suggested concrete policies from the government to tackle the issue, such as policies to absorb garment or textiles products from SMEs. Furthermore, the Indonesian government should aim for the non-conventional export market for the domestic garment and textile industry.