4,000 Nike Factory Workers in Bandung Furloughed Due to Raw Material Delays

Around 4,000 workers at a shoe factory in Bandung, West Java, have been furloughed since Monday, 15 June 2026, out of a total workforce of approximately 14,000. The furlough was confirmed by Ristadi, President of the Confederation of the Nusantara Workers’ Union (KSPN), who stated that the layoffs were caused by a delay in raw material supplies from the United States.

According to Ristadi, the supply disruption occurred after Nike transferred the direct supply of raw materials to a third-party vendor, leading to technical obstacles. The necessary materials are now expected to arrive only in July. During the furlough period, the company is obliged to uphold workers’ statutory rights under the Labour Law, including the continued payment of the applicable minimum wage.

However, Ristadi expressed deeper concerns that the issue may not be solely about raw material shortages. He fears the disruption could reflect a decline in global purchasing power for Nike products, prompting the brand to reduce its orders. He warned that such a scenario could lead to unavoidable mass terminations. He urged the government to intervene proactively by tightening import controls on goods that can be produced domestically, stabilising energy prices, simplifying business permits, rationalising taxes, and preparing a skilled workforce to protect domestic industries from a potential ripple effect.