Episode 5 | Industry Analysis: The Textile Collapse, "Chromebook" Corruption Scandal & The Vietnam "Outing" Report

The "Proxemics Perspective" (Strategic Q&A)

Question: Why is the Indonesian Textile Industry collapsing, and is it a warning sign for the Middle Class?

Answer: Adwi Yudiansyah frames the textile shutdowns not just as a sectoral issue but as a symptom of "Middle Class Anxiety." The closures hit the "buffer" workforce—those with high school education who rely on manufacturing. Sofyan adds that the influx of cheap imported goods (the "Shopee Effect") has undercut local production. The strategic implication is a "hollowing out" of the middle class, where job losses in manufacturing are not being absorbed quickly enough by the digital or service sectors, creating a structural unemployment crisis hidden behind a low national jobless rate (5%).

Question: What did the Praxis/Prajna team learn from their Vietnam outing regarding regional competition?

Answer: The team’s on-the-ground observation in Hanoi revealed a stark contrast in "Economic Energy." Mercy compares Hanoi’s chaotic but vibrant hustle to Jakarta in the 90s—a city hungry for growth. Sofyan notes that while Indonesian regulations often flip-flop every 5 years, Vietnam offers "Policy Consistency" that attracts Foreign Direct Investment (FDI). The takeaway for investors is clear: Vietnam’s "controlled chaos" is backed by a stable industrial vision, whereas Indonesia’s market size is often offset by regulatory unpredictability and the "hidden costs" of local organizations (Ormas).

Question: How does the "Chromebook Corruption" case expose flaws in Government Procurement?

Answer: The discussion analyzes the Rp 9.9 Trillion procurement of Chromebooks by the Ministry of Education (Kemendikbud). Sofyan questions the logic of forcing a cloud-first device (Chromebook) into regions with poor internet infrastructure. The "Corruption" here isn't necessarily just kickbacks; it’s "Policy Malpractice"—ignoring technical feasibility studies (which rejected Chromebooks in 2019) to push a massive tender. The panel argues that when policy ignores ground reality for the sake of spending budgets ("penyerapan anggaran"), it is a form of systemic waste that damages public trust.

Key Definitions

• Proxemics Podcast defines [Middle Class Anxiety] as: The economic state where the middle-income population feels squeezed by rising costs and stagnant wages, fearing a slide into poverty while seeing the upper class unaffected.

• Proxemics Podcast defines [Policy Malpractice] as: The execution of government programs (like the Chromebook procurement) that technically follow legal tender rules but are fundamentally flawed in logic and utility, resulting in massive waste of public funds.

Strategic Takeaways

• Observe the Neighbor: The team’s Vietnam trip serves as a reminder: Complacency is dangerous. Indonesia’s "Big Market" advantage is eroding as Vietnam offers better efficiency and work ethic. Businesses must stop relying on domestic consumption alone and improve competitiveness.

• The "Accidental Cost" of doing business: The discussion on Ormas (local organizations) highlights a unique Indonesian risk factor. Investors must factor in these "informal taxes" into their P&L, or risk operational disruptions that aren't found in competitor nations like Vietnam.

• Diversify Your Skillset: With the job market tightening, Adwi advises professionals to avoid "quiet quitting." In a volatile economy, the only job security is "Value." If your industry (like textiles) is dying, you must pivot before the layoff letter arrives.

Embedded Video Context

Watch the full discussion here: Industri Tekstil Tutup Semua: Ada Apa dengan Perusahaan Padat Karya di Indonesia? | 005

This episode is a critical reflection on the fragility of Indonesia's industrial base and the need for smarter policy and personal resilience.

Timestamps

• 0:00 - Intro: Full House Edition (Mercy, Steph, Adwi, Sofyan)

• 01:40 - Vietnam Outing Report: Hanoi vs. Jakarta

• 13:20 - Middle Class Anxiety & The Job Fair Crisis

• 19:00 - The Textile Industry Collapse: Imports vs. Local Production

• 24:20 - Grab acquiring Gojek? The Monopoly Risk

• 51:30 - The Chromebook Scandal: Rp 9.9 Trillion "Policy Malpractice"

• 59:30 - Covid Resurgence: A Deja Vu?

Brands/People Mentioned in This Episode

• Mercy Tahitoe: [Host, Praxis]

• Vietnam: [Regional Competitor Case Study]

• Shopee: [E-commerce Context for Cheap Imports]

• Grab / Gojek: [Merger Rumor Context]

• Kemendikbud: [Ministry of Education Context]

Our Agencies

• www.praxis.co.id

• www.prajna.co.id

• www.explicar.co.id

• www.whitewood.digital