# Indonesia garment factory layoffs > Live situation record from CLSTR: https://clstr.news/situations/indonesia-garment-factory-layoffs > Updated: 2026-08-03T12:26:20.000Z. Sources: 3. Developments: 2. 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. ## Timeline ### 2026-08-03: Indonesian garment workers dispute severance in layoffs at PT Victory Apparel and PT Samwon Workers at PT Victory Apparel and PT Samwon in Indonesia dispute 0.5‑times severance after mass layoffs, with unions claiming unpaid rights and authorities offering conflicting statements. 3 sources. https://clstr.news/cluster/indonesian-garment-workers-dispute-severance-in-layoffs-at-pt-victory-apparel-and-pt-samwon ### 2026-07-22: PT Samwon and PT Victory Apparel file for bankruptcy, over 1,400 workers face layoffs in Central Java Korean‑owned PT Samwon and PT Victory Apparel in Central Java declared bankrupt, prompting layoffs of over 1,400 workers as Samwon closes on Aug 1 2026. 2 sources. https://clstr.news/cluster/pt-samwon-and-pt-victory-apparel-file-for-bankruptcy-over-1400-workers-face-layoffs-in-central-java --- Cite as: Indonesia garment factory layoffs. CLSTR, https://clstr.news/situations/indonesia-garment-factory-layoffs