Indonesian garment workers dispute severance in layoffs at PT Victory Apparel and PT Samwon

In Semarang, PT Victory Apparel laid off 367 workers. Union leader Lusiatun said 205 employees accepted a severance package of only 0.5 times the statutory amount under Government Regulation No. 35/2021, while the remaining workers continue to seek full compensation, including long‑service awards. The local labor office was accused of favoring the company, and a visit by presidential labor adviser Said Iqbal did not change the company's stance.

In Jepara, PT Samwon Busana Indonesia dismissed 685 workers. The regional government announced that all severance and other dues were paid on 31 July 2026, but the Confederation of All Indonesian Trade Unions (KSBSI) in Central Java, represented by Nelson Siahaan, reported that many former employees had not yet received confirmation of payment. About 300 KSBSI members agreed to accept a 0.5‑times severance multiplier, while the union continues to press for the full one‑times amount and is assisting some workers in finding new jobs.