350 Workers Made Redundant Due to Global Crisis
A wave of job cuts has struck the national industry once again. A total of 350 employees at PT Xactie Indonesia in Depok, West Java, have been made redundant following the company’s closure due to global economic pressures and declining export markets.
Said Iqbal, President of the Confederation of Indonesian Workers’ Unions (KSPI) and leader of the Labour Party, confirmed that this closure serves as concrete evidence of warnings issued by the union since early April 2026. He stated that the situation is not merely speculative but grounded in real-world data.
“Indeed, approximately 350 workers at PT Xactie in Depok have been made redundant and the company has closed. This proves that KSPI’s previous statements were not baseless or scaremongering,” Said Iqbal said in a statement in Jakarta on Monday, 25 May.
Said explained that PT Xactie Indonesia, an export-oriented company, could not withstand the economic uncertainty caused by prolonged conflict. This has led to a surge in imported raw material costs, paid for in a weakened rupiah against the dollar, sharply increasing production expenses.
Despite the closure, Said confirmed that affected workers received their entitlements. “Workers have been granted severance pay twice the statutory amount under the Labour Law, plus service recognition and compensation for accrued rights as agreed,” he added.
The Depok case adds to the growing list of workforce rationalisations in Indonesia. KSPI has noted similar trends in other industrial regions.
Said Iqbal warned that further job cuts are likely in the next three months, particularly in the automotive sector and its derivatives, which are being hit by weakening consumer purchasing power.
KSPI and the Labour Party have opened the Orange Support Centre to assist workers affected by redundancies. They are urging the government and the House of Representatives to take concrete steps, including facilitating new job placements for those displaced.
KSPI hopes the government’s Redundancy Mitigation Task Force will operate effectively to ensure workers’ rights are upheld and to address the downturn in the formal industry.