Indonesia garment factory layoffs

In late July 2026, Korean‑owned PT Samwon Busana Indonesia and local PT Victory Apparel announced bankruptcy and the imminent shutdown of their Central Java plants, threatening the jobs of more than 1,400 workers. The companies cited the COVID‑19 pandemic and ongoing buyer and raw‑material pressures for their financial collapse, and provincial labour officials began mediating severance and other rights.

By early August, the layoffs were underway. In Semarang, PT Victory Apparel dismissed 367 workers, with only 205 accepting a severance package at half the statutory amount; the remaining staff continued to demand full compensation and long‑service awards. In Jepara, PT Samwon let go 685 workers. While the regional government claimed all severance and dues had been paid, the Confederation of All Indonesian Trade Unions (KSBSI) reported many former employees had not received confirmation of payment. Approximately 300 KSBSI members accepted the reduced severance, but the union persisted in pressing for full amounts and assisting affected workers in finding new employment.