PT Samwon and PT Victory Apparel file for bankruptcy, over 1,400 workers face layoffs in Central Java

Korean‑owned PT Samwon Busana Indonesia and local PT Victory Apparel, both garment manufacturers operating in Central Java, have declared bankruptcy. PT Samwon will cease operations at its Jepara plant on 1 August 2026 after five consecutive years of losses, while PT Victory has also halted production.

Together the closures threaten the jobs of more than 1,400 employees – around 1,400 at Samwon and 807 at Victory. Workers had already endured reduced hours and wage cuts before the layoffs were announced. Provincial labour officials said mediation is under way to settle severance and other rights. The firms blamed the COVID‑19 pandemic and ongoing buyer and raw‑material pressures for their financial collapse.

Samwon, originally established in Busan in 1990 and later expanded to Indonesia, employed about 2,070 staff in 2024, a number now projected to fall sharply as the plant shuts down.