The Impact of Covid-19 on Textile and Fashion Industries: The

Economic Perspective
Febristi Arania1 , Irley Maura Putri1 and Muchammad Saifuddin1

Management, UIN Sunan Ampel Surabaya, Indonesia

Correspondence author: febristi.fa@gmail.com

ABSTRACT:
The COVID-19 pandemic has not only had an impact on the ARTICLE INFO
health sector but also on the economy. Before the pandemic, the
Article History:
textile and fashion industry produced various kinds of fashion
Received 14 Oct 2021
needs involving all its employees. In Indonesia, the textile and Revised 28 Feb 2022
fashion industry are one of the most significant contributors to Accepted 04 Mar 2022
the state revenue. However, during the pandemic, the textile and Available online 20 Mar 2022
fashion industry sector decreased the amount of production. The
aim of this research is to determine the impact of Covid-19 on
the textile and fashion industry from the economic perspective.
This research is conceptual research by reviewing 30 related
journals. Not only does it lead to a declining demand, but the
pandemic also causes textiles and fashion be eliminated from the
society basic needs since people shifts their priorities to food and
health sector. In conclusion, companies must be able to
collaborate, to be flexible, and to be innovative in strategy. In
addition, the government must reduce imports and applies
import duties to support the collaboration.
Keywords:
Covid-19, Textile and Fashion Industry, Marketing and Supply Chain
 Arania, et al. The Impact of Covid-19 on Textile and Fashion Industries: The Economic ….| 2

1. INTRODUCTION
Covid-19 pandemic was initially started in China. It has claimed the lives of more
than 50,000 people worldwide, with nearly three-quarters of the deaths reported in
Europe. The United States has written more than 10,000 deaths. Covid-19 pandemic is
not only a health issue, but it also political, social, and even economic issues. In
Indonesia, two people were confirmed to be infected by Covid-19 in March 2020 (Covid
Map: Coronavirus Cases, Deaths, Vaccinations by Country - BBC News, n.d.). To prevent
the spread of the Covid-19 virus, the government made a government regulation policy
no. 21 of 2020 implements the policy of Large-Scale Social Restrictions, Social Distancing,
Work From Home (WFH). Moreover, several other countries implemented a "lockdown"
policy or locked down their country. Indonesia did not do a lockdown or a total lockdown
as it would impacted another sectors besides the health sector. However, the
government still closes access to go out of the country and to enter the country. As a
result of this restrictive policy, many shopping centers were forced to close. This is where
the challenge for the government as a policymaker. On the one hand, they want to
restore health conditions but it will make economic conditions decline. However, they
also want to maintain the economic conditions while the virus are spreading. The
handling of Covid-19 must indeed be carried out quickly by considering its rapid
widespread as the world economy is also a victim.
According to the analysis of Professor Carlos Cordon in (Lathifah, 2020a), a supply
chain expert from the Institute for Management Development (IMD) explained that
several issues are the impact of Covid-19. First, there is panic buying in various regions of
the country. The Association of Indonesian Advisory Board of Shopping Center Tenant
(HIPPINDO) stated that three panic periods of purchases occur in Indonesia. The first
case happened on March 2, 2020, when the first case of COVID-19 in Indonesia
appeared. The second case happened on March 14-16, 2020 when many agencies were
called for working from home. The third case happened on March 19 2020 by the
starting of the intensive information about the planned implementation of lockdown
(Bappenas, 2021). The panic buying caused the emergence of public concerns that basic
commodities would run out when they were quarantined in their respective homes
(Wahyu et al., 2021). The impact of the drastically increasing demand resulted in prices
rising, and there were groups of people who did not get a share. Second, there is an
increasing demand for some products as health products are everyone's top priority. As
a result, the demand for disinfectant products, hand sanitizers, masks, Covid-19 test kits,
and personal protective equipment has increased dramatically and some people take
advantage of this momentum. Third, the closure of factory production is unavoidable
when the only available Covid-19 prevention effort is physical distancing. As the result,
many companies temporarily have to close their company operations. The closure was
due to the mass lay off and resulted in the dismissal or reduction of employees. Fourth,
the increasing demand for workers in the distribution and logistics sector caused the
distribution of basic needs and it required many human resources abruptly. Fifth, the
global economic recession was caused by the damage from both supply and demand
sides. Those reasons impact the economy, such as the decrease in people's income, the
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reduction in consumer demand, the potential for bankruptcy, and the increase in
unemployment, especially for the informal sector workers. This is due to the decrease in
output due to the restrictions on people's movements and activities, as well as the
disruption in supply chain (Safitri et al., 2020)
The pandemic now also affects in major textile and apparel producing countries in
Asia and causes different impacts on different nodes of the global supply chain.
Globalization which has ensured the fulfillment of all the basic needs of a country has
now been threatened and destroyed by Covid-19. Many countries have limited
interaction between countries with each other by prohibiting the foreigners to make a
visit. Covid-19 pandemic has changed people's behavior in daily shopping and changes in
priority needs. Several changes occur and have a significant impact on global supply
chains and how each country is trying to adapt to the changing conditions. (Chowdhury
et al., 2021)
One of the industries affected by the pandemic is the textile and fashion industry. As
the top 10 commodities in Indonesia, these industries play an important role in
economic growth, poverty alleviation, and job creation. Before the pandemic, the textile
industry sector also experienced a decline in competitiveness due to high energy and
logistics costs, low productivity, and layered downstream legal and tax issues. During the
pandemic, the textile and fashion industry sector was the most affected industry among
other manufacturing industry sectors although this sector is favored by many
entrepreneurs as many as 323 industries recorded by the Ministry of Industry. In 2019,
the textile and apparel industry showed a brilliant performance by recording a growth
rate of 15.35%. Moreover, this sector has become a mainstay (WTO | Press Release 2020
- Trade Will Drop as the COVID-19 Pandemic Shakes the Global Economy - Press/855, nd-
a) in the 2015-2035 National Industrial Development Master Plan (RIPIN) and which
development is prioritized based on the Map Making of Indonesia 4.0 Road (Bappenas,
2021)
In the early phase of the pandemic, slowing China raw material supplies harmed the
production in Indonesia, Cambodia, and Sri Lanka. China, as the major supplier of textile
and fashion raw materials, has locked the country. Thus, the supply of several countries
is also disrupted, especially the supply of raw materials in the Asian region such as Sri
Lanka and Myanmar as the center of apparel manufacturing which 90 percent of their
raw materials supply depends on China. In addition, as the producer of textile and
fashion, this condition in China also affects the apparel industry. In America, about 40
percent of clothing comes from China (Leitheiser et al., 2020a). Currently, some
predictions suggest that China could lose its role as a supply chain center for countries
such as Brazil, Mexico, and several Southeast Asian countries (Lathifah, 2020b). This is
especially true for companies with a lean and global supply chain structure. Another
facts report that 94% of the 1000 companies listed on Fortune's list have experienced
supply chain disruptions triggered by COVID-19. As a result, companies must reorganize
supply chains by increasing resilience and re-examine relationships with suppliers to
reduce systemic risk (McMaster et al., 2020). During the Covid-19 pandemic, companies
 Arania, et al. The Impact of Covid-19 on Textile and Fashion Industries: The Economic ….| 4

must be able to adapt to new environmental changes. Company leaders as policymakers

must be able to determine what strategic steps should be used. This study aims to
further study the impact of the Covid-19 pandemic on the textile and apparel fashion
industry sector, especially in the territory of Indonesia.
2. LITERATURE REVIEW
In this study, the literature perspective used is the theory that forms the basis for
research and also literature review through national and international research journals
that discuss the impact of COVID-19 on the textile and clothing industry sector on the
economy.
Table 1. The impact of COVID-19 on the textile and clothing industry sector

Impact area Specific impact References

Demand issues Demand for textiles decreased (Sari, 2021); (Wulandari &
Darma, 2020); (McMaster et al.,
2020); (Leitheiser et al., 2020b);
(Risti Ade Putra, n.d.)

Textile industry workers who (Daneswari, 2020; Muhammad,

were affected by labor housing 2020); (Prasetio, 2020);
or labor reductions (Leitheiser et al., 2020b);
(Perdagangan & Prima, 2015)

Finance issues Financial losses in the textile (Ivanov & Das, 2020); (Kumar &
and fashion industry Kumar, 2021); (Hakovirta &
Denuwara, 2020); (Guan et al.,
2020); (Kas Tertekan, 700
Perusahaan Tekstil Sulit Bayar
Kredit, n.d.).; (Imbas Gagal
Bayar Utang, Sritex Didepak
Dari 4 Indeks Saham, n.d.);
(Resiliensi Industri Di Tengah
Pandemi Fakultas Ekonomi
Dan Bisnis Universitas
Brawijaya, n.d.)

Supply chain issues The decline in demand for the (Prasetio, 2020); (Kemenperin:
textile industry capacity Lampaui 18 Persen, Industri
Tekstil Dan Pakaian Tumbuh
Paling Tinggi, n.d.);
(Perdagangan & Prima, 2015);

The disproportionate decline in (Prasetio, 2020); (Chowdhury et

US cotton exports to Indonesia al., 2021); (Budi Basuki & Bank
Mandiri Persero Tbk, 2016);
(Yofa et al., 2020)

Studies from (Sari, 2021) and (Wulandari & Darma, 2020) as displayed in Table 1
show that the effect of Covid-19 was felt by MSMEs in the textile sector because their
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products are usually marketed traditionally in tourism places. Since it was closed as the
impact of the pandemic, MSMEs are forced to seek marketing alternatives through
internet marketing channels such as e-commerce. In addition to marketing problems,
there are also supply chain management problems. Research from (McMaster et al.,
2020) and (Leitheiser et al., 2020b) found that countries exporting raw materials and
importing countries could not run properly during the lockdown. China, as the ruler of
the textile raw material export market, has locked up its country so that some importing
countries do not get supplies of textile raw materials. In addition, several countries have
also experienced the same thing to the point of maintaining the safety and health of
some companies (Risti Ade Putra, n.d.). Only a few employees who have important
positions and strategies can be hired, such as employees who know about digital
marketing technology.
To prevent the spread of the virus, governments have enforced full or partial
lockdowns around the world, restricting vehicle movements; such as measuring the
significant impact on suppliers' ability to deliver items on time to customers (Ivanov &
Das, 2020). Companies in today's globalized world source commodities from all around
the world. Even if a company's primary suppliers are domestic, its tier 2 or tier 3 vendors
are almost certainly situated abroad. As a result, manufacturers have experienced supply
shortages due to the abrupt suspension of overseas suppliers' operations under local
restrictions imposed by lockdowns.
In another study, (Misbahul et al., 2020) and (Chakraborty & Biswas, 2021) stated
that due to the quiet textile market, they racked their brains to produce goods that have
high demand, such as masks and Personal Protective Equipment (PPE). This is done to
maintain the company's finances and employees. In a study (Kumar & Kumar, 2021), it is
stated that the Indian government also helps the existence of textile companies through
a policy of retribution rebates in the international market and credit assistance to revive
their textile business.

3. METHODS
The research methodology was a descriptive qualitative method.It is based on the
secondary data from study results and literature references to data obtained through a
literature review of scientific journals and research-related information. The types of
data used are qualitative and quantitative data from online journals and news. 30
Journals, online news, and other literatures have been researched for their creation and
several journals are very important for this article. The literature used is related to the
topics of fashion, textiles, Covid-19, and also supply chains. The results of several reviews
will be used to identify the impact of Covid-19 on the textile and fashion industry.
 Arania, et al. The Impact of Covid-19 on Textile and Fashion Industries: The Economic ….| 6

Figure 1. Searching methodology for finalizing the articles for analysis.

Figure 1 explains that the first step is to find the international and national
journals. At the collection step, a total of 85 journals were obtained to be classified. In
the second step, the journals were selected based on the title, abstract, section, and
issues that were discussed in the journal into 45 journals. In the third step, to get more
detailed references, it is necessary to re-select journals with more attention to abstracts
and discussion. As the implication, 30 journals can be obtained as the main references.
To support this research, it also includes data from several sources such as websites,
online news, and other literacy sources related to this research.

4. RESULTS AND DISCUSSION

4.1 Economic Growth Data
The government's policy so that people do not leave their homes affects economic
conditions that cause a decrease in supply and demand. As can be seen in Figure 2,
Indonesia and even the whole world experienced a slowdown in the economy. In
Indonesia itself, it experienced a slowdown of 2.07% as of the end of 2020. The
Indonesian economy is in the category of the recessionary abyss since the growth rate is
negative in two consecutive quarters. However, the international institutions such as
theWorld Bank, OECD, and International Monetary Fund (IMF) project state that the
slowdown in economic growth in Indonesia is relatively smaller than in countries in
Europe, the USA, and Japan. The latest estimation shows that the trading volume
declined between 13% and 32% in 2020 (WTO | 2020 Press Releases - Trade Set to
Plunge as COVID-19 Pandemic Upends Global Economy - Press/855, n.d.), the global
growth fell to -3% (International Monetary Fund, 2020) and various maritime scenarios
ranged from a return to the sector average (approximately 3% pa) after 2022 to a
declining growth rate of 17% by 2024.

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Figure 2. Economic Growth Rate in Certain Countries

Source: Report of PT Sarana Multi Infrastruktur

The limited mobility of people during the pandemic has caused a decline in demand
for the manufacturing industry. At the same time, the manufacturing industry can
contribute 19.87% to the economy in Indonesia. The growth of the manufacturing
industry in the second quarter of 2020 decreased by 6.19%.

4.2 Demand Issues

Economic problems due to the Covid-19 pandemic can be seen from the demand
side. On the demand side, the Covid-19 pandemic has reduced the consumption and
trade sectors. In 2020, the domestic demand for textiles decreased by 50 percent, so
there were around 2.1 million textile industry workers who were affected by labor
housing or labor reductions. The reduction was made because there was no demand,
which resulted in a decrease in the production process and a non-current company cash
flow.
Although domestic demand for textiles and apparel has decreased, imports of
textiles and apparel in Indonesia during the Covid-19 pandemic increased. According to
the Indonesian Central Statistics Agency (BPS), in May 2020, the import value of special
woven fabrics stood at US$ 12,797,291 with a total of 922,029 Kg. This type of fabric
includes frayed textile fabrics, lace, wall rugs, decorations, and embroidery. Also, imports
of textile goods suitable for industrial use reached US$ 38,798,172 with a capacity of
4,900,044 Kg. This type includes impregnated, coated, covered, or laminated textile
fabrics. However, it does not mean that other segments are not monitored by Chinese
manufacturers. There is also a potency that is starting to be seen, namely ready-made
textile goods. BPS data shows that in May 2020, the value of this commodity reached
US$ 37,256,567 with a total of 1,907,540 Kg.
4.3 Finance Issues
Contraction in supply chain financial performance (Ivanov & Das, 2020) and total
cash in flow (Hakovirta & Denuwara, 2020) are documented in the examined
publications in terms of financial management or performance domain. Two studies
(Guan et al., 2020) investigated at how these losses change as a result of other factors
 Arania, et al. The Impact of Covid-19 on Textile and Fashion Industries: The Economic ….| 8

such as restriction measures and length. According to the data research, the amount of
financial losses is mostly driven by the number of countries that adopt lockdown or
restriction measures, as well as the length of time that these limitations are in place,
rather than the severity of such measures (Guan et al., 2020). The magnitude of losses is
also determined by the timing of facility closures and reopenings at various levels of a
supply chain (Ivanov & Das, 2020). As a result of these performance cutbacks, the global
gross domestic product is anticipated to fall by 12.6 percent in 2020, with the global
shutdownraising that figure to 26.8% (Guan et al., 2020)
Before the Covid-19 pandemic, several textile companies listed on the IDX also had
problems in their cash flow. Financial statements are one of the important indicators for
companies to find out the company's position. Financial statements are generally in the
form of cash flow. Secretary-General of the Indonesian Filament Yarn and Fiber
Association (APSyFI) said that more than 50 percent or around 700 companies are having
difficulty paying loan installments to banks currently. Cash flow is still depressed due to
the Covid-19 pandemic (Kas Tertekan, 700 Perusahaan Tekstil Sulit Bayar Kredit, n.d.).
One of the biggest textile companies in Indonesia with financial problems is PT Sri Rejeki
Isman (SRIL) or commonly called Sritex. The Sritex company has already a fairly large
amount of outstanding debt starting from 2021 until 2022. Throughout 2020, Sritex's
cash flow was at a minus number. As reported by (Imbas Gagal Bayar Utang, Sritex
Didepak Dari 4 Indeks Saham, n.d.), Sritex is currently in the gray stage because it has the
status of Debt Payment Obligation Suspension (PKPU).
Besides Sritex, there is a giant textile company that also experienced disruptions in
its cash flow, namely PT PAN Brother Tbk (PBRX). Currently, Pan Brother has filed a debt
restructuring against the Singapore court for its debt of Rp 4.36 Trillion. Debts to
creditors in Singapore have been successfully postponed until July 1, 2021. Domestically,
PT PAN Brother has also been sued by PT Maybank Indonesia Tbk to PKPU for a total
debt of Rp. 4.16 billion with an interest rate of Rp. 446 thousand.
4.4 Supply Chain Issues
In addition to demand problems, the global market is also experiencing supply chain
problems. At the global level, the textile industry needs more world fabrics to depend on
China. For example, in Bangladesh, 70 percent of the raw fabric materials come from
China, and 90 percent of the fabric in the garment industry comes from China.
In Figure 3, Indonesia has decreased in demand for the textile industry capacity.
Indonesia's cotton imports for the January-July 2020 period fell 20 percent to 302,370
tons (equivalent to 1,389 bales). This figure slightly decreased compared to 379,203 tons
(equivalent to 1,742 bales) during the same period in 2019. Following a record year for
the US cotton exports in 2018, and a moderate decline in 2019 as a result of high
residual stocks and sluggish domestic demand, Indonesian cotton imports from the US
fell by 32% to 109,081 tonnes (equivalent to 501 bales) from 161,004 tonnes (equivalent
to 739 bales) imported during the same period in 2019.

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Figure 3. Cotton Data Import From US

Sources: USDA GATS

The disproportionate decline in US cotton exports to Indonesia was partly due to rising
US cotton prices as a result of demand resulting from the implementation of the Phase
One trade agreement between the United States and China. The increase for US cotton
imported from China, which increased dramatically in June–August, has pushed
Indonesian buyers toward more competitive supplies from Brazil and Africa. (McMaster
et al., 2020)

5. DISCUSSION
Indonesia is an integrated textile-producing country and included in the top 10
textile-producing countries. Indonesia is also ranked in 12th position as the exporter of
textiles and apparel. Its target export areas include the Americas, the European Union,
and the Middle East. The first largest textile exporter is China with more than 50%
control of the territory because China has taken a serious part in exporting the raw
textile materials such as cotton, fiber, yarn, and apparel. The second is India with a world
market share of 6.9%. Indonesia can contribute 1.5% of the textile market. Based on the
data of Central Statistics Agency Indonesia, Indonesia exports 60% of fashion apparel,
35%of fiber and yarn, and the rest is exported fabrics.
Before the pandemic, the textile industry experienced a chronic problem in entering
a wider export market share. Although the exports have increased in recent years, this
has also been accompanied by an increase in textile imports. In 2018 to 2019, the
average increase in textile exports was 8.9%. This figure is feared to shift the existence of
the domestic textile industry. This condition is different from neighboring countries,
namely Vietnam, which can reduce imports and increase exports.
In pandemic era, the textile and fashion apparel industry experienced demand
problems because the demand for textiles and apparel fashion in the market is
significantly declined. At the time of the pandemic, textiles and fashion were not the
main basic needs because people are more focused on food and health needs.
Meanwhile, on the global market, it has been predicted by the International Labor
 Arania, et al. The Impact of Covid-19 on Textile and Fashion Industries: The Economic ….| 10

Organization (ILO) that there will be a decline in demand in the European market by up
to 50% (Industri Pakaian Sempat Melorot, Bagaimana Nasib Pekerjanya?, n.d.). This
shows that the demand for textiles and fashion apparel in the global market has also
decreased. It also affects the textile and fashion industry in Indonesia because Indonesia
is a major textile and fashion exporter. According to the general chairman of the
Indonesian Textile Association, in 2020, domestic textile demand will decline by 50
percent, resulting in around 2.1 million textile industry workers who are affected by
labor housing or labor reductions. The reduction was made because there was no
demand, resulting in a decline in the production process and the company's cash flow. In
June 2020, several textile and fashion factory employees were recalled to work.
However, the workers recalled are those who meet the production qualifications. It is
due to the fact that the demand for textiles in the export and import markets is still low
in June 2020. It is estimated that the factory's production capacity is still 25 percent-30
percent due to the declining demand for textiles in the market. They expected the
government to immediately apply import duties on trade security measures or apparel
safeguards. This way is believed as the right step to save the textile SMEs.
By seeing the problems faced by the textile and apparel fashion industry, namely the
suppressed cash flow of companies during this pandemic, the policy mix that has been
issued by the government has been right on the target to reduce the burden on the
textile and apparel fashion industry. Especially, with various tax incentives, as well as an
opportunity for the company to restructure its debt, it will reduce the interest expense
and debt burden that must be paid by the company so that it can help the company's
cash flow in the short term. In its implementation, not all of the policies issued have
been effective. For example, the debt restructuring policy is considered to get
improvement in its implementation.
From a logistics perspective, industrial textiles, apparel, and garments are considered
time-sensitive industries. Deviations in getting goods to attain a good place at a good
time can lead to reduced (or non-existent) profits for industry textile owners. Clothing
collections also vary frequently because their life cycles are short (as perishable goods)
and their marketing is marked by peak seasons. Textile logistics is characterized by
limited inventories and short delivery periods in this regard. Land, sea, and air routes are
typically used to deliver these items and raw resources. Strong multimodal links are
critical in the context of trade logistics to ensure on-time delivery.
However, due to Covid-19, Indonesia is also experiencing problems in its export
share. One of the obstacles is logistics or delivery. Indonesia's geographical location is
below, while exports to upper countries such as America and Europe require very
expensive costs. The cost of shipping containers for shipping every year also always
increases and even increases by 200 percent to 300 percent. Regarding global logistics
issues, it is still a big challenge for the sector of domestic manufacture. This impact can
be seen from the skyrocketing logistics costs to the extended grace period so that it has
an impact on the supply of raw materials and export barriers.

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In fact, in addition to the need for capital, textile and fashion sector business actors
also need market access. Currently, many textile and apparel fashion industry business
actors complain about the high cost of freight costs to export destination countries. This
year (2021), the increase is up to 4 times. Seeing this sad reality, the Indonesian Textile
Association (API) urges the government to immediately implement the Safeguard
Measures Import Duty (BMTP), aka safeguard for imported garment products. This is due
to the surge in cheap imported products has caused deep losses to the domestic textile
and textile product (TPT) industry. Illegal imports circulating in various modes will not
only harm domestic producers but will also harm the government because it increases
the loss of potential taxes that will be received by the government.
Two strategies can be used in dealing with a pandemic: collaboration and flexibility
(Shekarian and Parast, 2020). First, according to a recent review collaboration strategy
(Duong and Chong, 2020), they identified seven collaborative practices used by supply
chains to adapt and recover from a pandemic: (1) contracting and economic practices;
(2) joint practice; (3) relationship management; (4) technology and information sharing
practices; (5) governance practices; (6) appraisal practices; and (7) supply chain design
(integrated operations).
The second strategy is to use several or numerous sources of flexibility: product and
process flexibility ((Pujawan & Bah, 2022); (Ivanov & Das, 2020)). While redundancy
programs are more typically recommended than flexible plans, the latter is applicable
across different types of supply chains ((Hakovirta & Denuwara, 2020). For example,
flexibility in procurement plans taking into account sourcing, price, consumption, and
shipping patterns is effective for managing the impact of disruptions on the cruise ship
supply chain (Wang & Zhao, 2020)
6. CONCLUSION
Covid-19 has hit most countries in the world and one of them is Indonesia. It has
impacts on both large-scale industrial sector and small-scale industry, especially the
textile and fashion industries which are not directly related to health needs. In terms of
marketing, the textile and fashion industry experienced a decrease in demand due to
stay-at-home regulations and shopping closures. The decrease in demand was followed
by a decrease in the amount of revenue; thus, it disrupted the company's financial
turnover. Disrupted finances make it difficult for many companies to pay debts and
employee salaries. To solve this problem, the company restructured its debt and cut the
number of employees in addition to demand issues that have an impact on finances.
Another problem arised is in the supply chain. It is related to the policies of several
countries that temporarily close their international trade activities. Moreover, some of
the main raw materials are obtained from other countries and some domestically
produced products are sold abroad. From the problems above, the government has
provided support to revive the economy by facilitating debt payments and making
policies to facilitate the distribution of goods abroad.
The Covid-19 pandemic has greatly affected the fashion and garment sector in
Indonesia. To support the textile sector industry affected by the Covid-19 pandemic,
 Arania, et al. The Impact of Covid-19 on Textile and Fashion Industries: The Economic ….| 12

companies and small media enterprises must use collaboration and flexibility strategies
that can be used in dealing and recovering from a pandemic. The government must
support cooperation between small and medium industries and large industries so that
large industries can provide easy access to raw materials for garment SMEs. The
government provides security for the domestic garment market which is in line with the
increase in imports of this sector in the last three years. It also encourages the supply
chains in Indonesia and implements the import substitution policies.
7. ACKNOWLEDGEMENTS
Alhamdulillah Rabil 'Alamin, the researcher, expresses his highest gratitude to Allah
subhanahu wa ta'ala for blessing, love, opportunity, health, and mercy to complete this
journal article. In arranging this article, many people have provided motivation, advice,
and support for the researcher. In this valuable chance, the researcher intended to
express his gratitude and appreciation to all of them. Finally, we would like to thank
everybody to the successful realization of this article. This journal article is still far from
perfect, but it is expected to be useful; not only for the researcher, but also for the
readers. For this reason, constructive thoughtful suggestions and critics are welcomed.

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