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

SEMARANG – As many as 846 workers and employees of PT Victory Apparel Indonesia in the Tanjung Emas port area of Semarang, Central Java, are threatened with dismissal (PHK).

According to the Semarang City Manpower Office (Disnaker), operations at the garment factory, which produces orders for international brands, have been suspended for a month due to mounting financial pressures stemming from the lingering impact of the Covid-19 pandemic, recurrent tidal flooding, raw material supply problems and weakening international demand.

The factory, which fulfils orders for international brands through PT Victory Apparel Indonesia’s global supply chain, has suffered sustained financial losses since the pandemic, with tidal flooding in the Tanjung Emas port area repeatedly disrupting its operations and production distribution.

Said Iqbal, the President’s Special Adviser on Employment and Workers’ Welfare, visited the export garment factory on Monday (27/7/2026) to ensure the rights of the 846 affected workers are protected. During the visit, the government offered two options: state intervention to help resolve the company’s capital problems and find regulatory and raw material solutions so that dismissals can be avoided, or a guarantee that workers receive their full entitlements before factory operations cease in October.

The Semarang City Manpower Office continues to coordinate with the company’s management to monitor developments in the employment situation and pursue measures to protect the affected workers.