Factory Operations Halt, 846 Workers at PT Victory Apparel Indonesia Face Layoff Threat

A total of 846 workers and employees at PT Victory Apparel Indonesia in the Tanjung Emas Port area of Semarang, Central Java, are facing the threat of termination. The Semarang City Manpower Office (Disnaker) reported that operations at the garment factory, which produces orders for international brands through a global supply chain, have been halted for a month. The company is experiencing financial difficulties due to losses from the Covid-19 pandemic, frequent tidal flooding in the factory area, and ongoing raw material problems, which have made it vulnerable to shifts in the international market. Production activity inside the factory has stopped, leaving a number of production facilities idle. The Semarang City Manpower Office continues to coordinate with company management to monitor the employment situation and seek protective measures for the workers. Special Adviser to the President on Manpower and Labour Welfare, Said Iqbal, visited the factory to ensure the protection of rights for the affected workers. The government has offered two options: intervention to assist with capital and find solutions for regulations and raw materials to prevent layoffs, or ensuring full payment of workers’ rights before the factory’s operations end in October.