{ "success": true, "data": { "id": 1716081, "msgid": "buzz-over-reports-of-krakatau-osaka-steel-closure-and-mass-layoffs-what-business-leaders-say-1777874007", "date": "2026-05-04 12:00:00", "title": "Buzz Over Reports of Krakatau Osaka Steel Closure and Mass Layoffs: What Business Leaders Say", "author": "", "source": "CNBC", "tags": "", "topic": "Business", "summary": "PT Krakatau Osaka Steel, a joint venture between Indonesia's Krakatau Steel and Japan's Osaka Steel, is closing operations due to financial pressures from its Japanese parent company, leading to mass layoffs that have gone viral on social media with emotional farewell videos. The Indonesian Chamber of Commerce and Industry (Kadin) is investigating the situation and highlights challenges like rising production costs, global competition from cheap imports, and fluctuating energy prices affecting the steel sector. Kadin urges transparent processes protecting workers' rights and calls for government-business collaboration to safeguard the domestic market and boost efficiency, while the labour union plans to verify on-site and the government confirms the closure stems from competitive and financial difficulties.", "content": "

Jakarta, CNBC Indonesia - The farewell moment of employees at PT\nKrakatau Osaka Steel (KOS) was captured in a touching video that went\nviral on social media. In the circulating footage, workers are seen\nhugging each other, while others take photos together holding farewell\nsigns that depict a sense of loss as well as hope for a fresh start.\nSome also signed their colleagues\u2019 clothing as mementos. The atmosphere\nwas emotionally charged, feeling sad yet warm from the camaraderie built\nover time at the workplace. Amid the news, the Indonesian Chamber of\nCommerce and Industry (Kadin) has spoken out. Vice Chairman of the\nCoordinating Division for Organisation, Communication, and Regional\nEmpowerment of Kadin Indonesia, Erwin Aksa, stated that his organisation\nis still investigating the information regarding layoffs at the steel\ncompany. \u201cKadin Indonesia is observing the circulating information\nrelated to layoffs at PT Krakatau Osaka Steel (KOS). To date, we are\nstill confirming and coordinating with relevant stakeholders to ensure\nthe factual conditions on the ground, including the company\u2019s\noperational status,\u201d Erwin told CNBC Indonesia on Monday (4\/5\/2026). He\nemphasised that if operations are indeed halted or production adjusted,\nimpacting the workforce, it becomes a serious concern for the business\nworld. \u201cFrom a business perspective, such decisions are generally\ninfluenced by a combination of factors, including production cost\npressures, particularly energy and raw materials, tight global\ncompetition, especially from lower-priced imported steel products, and\ndomestic demand dynamics that have not fully recovered,\u201d he explained.\nAccording to him, the steel industry is highly vulnerable to global\npressures, including energy price fluctuations and overcapacity in the\ninternational market. \u201cMoreover, the steel industry is a sector that is\nvery sensitive to global economic fluctuations, including energy prices\nand overcapacity conditions in the international market, which in recent\ntimes have pressured domestic producers\u2019 margins,\u201d he said.\nNevertheless, Kadin Indonesia reminds that any business adjustment\nprocess must prioritise workers\u2019 fates. \u201cKadin views it as important\nthat every business adjustment process upholds principles of prudence,\ntransparency, and protection for the workforce, including fulfilment of\nemployees\u2019 rights in accordance with applicable provisions,\u201d Erwin\nstated. Looking ahead, Kadin encourages joint steps between the\ngovernment and business actors, from domestic market protection to\nlogistics and energy cost efficiency, as well as accelerating national\nstrategic projects to absorb domestic industrial products. Additionally,\ndialogue between companies, workers, and the government is deemed\nessential to find the best solutions. Meanwhile, President of the\nIndonesian Confederation of Trade Unions (KSPI) and President of the\nLabour Party, Said Iqbal, admitted he has not yet received direct\nreports regarding the factory closure and layoff news. \u201cKSPI has not\nheard about it yet.. Today we will check on the ground,\u201d Said Iqbal said\nwhen contacted separately. On the other hand, the government has\npreviously confirmed the closure of PT Krakatau Osaka Steel\u2019s\noperations. Deputy Minister of Industry (Wamenperin) Faisol Riza stated\nthat the decision is related to the financial condition of the parent\ncompany in Japan. \u201cOh yes, we have (received news of the PT Krakatau\nOsaka Steel closure),\u201d Faisol said when met at the Parliamentary\nComplex, Jakarta, on Wednesday (4\/2\/2026). He explained that Krakatau\nOsaka Steel is facing financial pressures, making it difficult to\ncompete in the global steel industry. \u201cIf there is indeed an indication\nthat Osaka Steel company is facing financial difficulties,\u201d he\nclarified. According to Faisol, the decision is a direct directive from\nthe company\u2019s headquarters in Japan. \u201cSo there is indeed a call from the\ncentre that they cannot compete with others and are facing financial\ndifficulties, so they have decided to close,\u201d he added. As background,\nPT Krakatau Osaka Steel is a joint venture between Osaka Steel Co.,\nLtd.\u00a0and PT Krakatau Steel (Persero) Tbk, established in 2012 and\ncommencing operations in 2016. The factory, located in the Krakatau\nIndustrial Estate, Cilegon, has an investment value of around US$200\nmillion with a production capacity of up to 500,000 tonnes per year and\nemploys about 170 workers.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/buzz-over-reports-of-krakatau-osaka-steel-closure-and-mass-layoffs-what-business-leaders-say-1777874007", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }