Depok Factory Shuts Down, 350 Workers Laid Off as Union Chief Cites War and Rupiah Depreciation

Jakarta, CNBC Indonesia – The union chief has revealed the reasons behind PT Xacti Indonesia’s permanent closure and the layoff of 350 workers.

Said Iqbal, President of the Confederation of Indonesian Workers’ Unions (KSPI) and leader of the Labour Party, stated that global and domestic uncertainties were the primary cause of Xacti Indonesia’s inability to continue operations.

‘We confirm that approximately 350 employees at PT Xacti Indonesia in Depok, West Java, have been laid off, and the company has ceased all operations,’ Said Iqbal said during a press conference on Monday, 25 May 2026.

‘The closure of Xacti Indonesia is due to the impact of the war between Iran, the United States, and Israel, which has created uncertainty over its duration, causing prices of raw materials, fuel, and production costs to soar,’ he explained.

The uncertainty has driven fuel prices to record highs. As fuel costs rise, companies must implement efficiency measures, especially since the factory uses non-subsidised industrial fuel for its machinery.

‘Industrial fuel is non-subsidised, and with prices rising this month, production costs have increased, leading to efficiency measures,’ Said Iqbal added.

‘However, in Xacti Indonesia’s case, it’s not just about efficiency – the company has closed entirely because it can no longer compete. Xacti also exports camera products, and the global market is currently sluggish due to the conflict, which is the main factor,’ he said.

In addition to rising fuel costs affecting production expenses and competitiveness, the rupiah’s depreciation has also contributed to the factory’s closure.

‘The company has been affected by the rupiah’s weakness because raw materials are imported in dollars, increasing production costs as their transactions in Indonesia are in rupiah,’ he explained.

Said Iqbal confirmed receiving information about the layoffs through worker union reports, noting that employees had been given advance warnings.

‘This is not made up – we directly received reports from members below, who were typically notified in advance by the company,’ he stressed.

Said Iqbal added that Xacti Indonesia was previously a member of KSPI under the Metal Workers’ Federation (FSPMI). However, over the past two months, the company had ceased active membership in KSPI and FSPMI as it prepared for permanent closure.

‘Xacti Indonesia was a KSPI member via FSPMI, but for the last two months, it has been inactive in union membership, so our advocacy for Xacti Indonesia has concluded following the closure and layoff of 350 workers,’ he said.