A representative of the Presidential Advisory Council on Labour and\nWorkers\u2019 Welfare, Dadan Sudiana, conducted a spot inspection at PT\nNamnam Fashion Industries in Cimahi, West Java, on Thursday following\nthe mass termination of 178 employees. Based on data from the Cimahi\nCity Manpower Office, the layoffs were carried out in two waves: 92\nworkers on 17 June 2026 and a further 86 workers on 31 July 2026.<\/p>\n
During the inspection, Dadan identified irregularities after\nexamining the company\u2019s financial records. He stated that PT Namnam had\nexperienced a decline in profit rather than an actual loss from its\ngarment operations. A decline in profit means the company was still\ngenerating earnings, albeit less than in previous periods, whereas a\nloss would indicate that operational costs exceeded revenue.<\/p>\n
\u201cThere is a discrepancy in the information we received. I requested\nthe audited financial report from a public accountant, and I saw a\nreduction in profit, not a loss,\u201d Dadan explained. Under these\nconditions, he argued, the affected workers should have received\nseverance pay at the full rate stipulated by Government Regulation\nNo.\u00a035 of 2021, rather than half the rate. He noted that while there was\nan agreement between the company and workers for the reduced payout, the\nworkers\u2019 bargaining position was inherently weak. \u201cI assess that the\ntermination, based on efficiency to prevent losses, should warrant one\ntimes the provision, not half. This is not fair, especially since the\ncompany has been operating for decades,\u201d he said.<\/p>\n
Dadan added that the findings would be reported to Presidential\nAdvisor Said Iqbal and subsequently forwarded to President Prabowo\nSubianto to seek the best solution. He indicated that the company still\nhas contract workers completing remaining orders and suggested that\nproduction could continue, allowing the business to retain its workforce\nand provide the full severance entitlement. \u201cI will review the next\nsteps with Mr Said Iqbal. I believe the company can still be saved if\nthe owners are willing to make other efforts, because layoffs should\ntruly be a last resort,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/presidential-advisor-finds-irregularities-in-cimahi-garment-companys-mass-layoffs-1786024358", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }