Indonesian Political, Business & Finance News

Factory Workers in Cilincing Demand Job Security After Being Pressured to Resign for Holiday Allowance

| | Source: KOMPAS Translated from Indonesian | Social Policy
Factory Workers in Cilincing Demand Job Security After Being Pressured to Resign for Holiday Allowance
Image: KOMPAS

JAKARTA — Approximately 200 workers at PT Amos Indah Indonesia in the Nusantara Bonded Zone (KBN), Cilincing, North Jakarta, went on strike on Thursday, 12 March 2026. The strike was triggered by controversy over holiday allowance (THR) payments and uncertainty regarding workers’ employment status, which remains unresolved.

Lindah, a worker at PT Amos Indah Indonesia and chairman of the Indonesian Labour Union Federation (FSBPI) branch, stated that the conflict between workers and the company had actually been ongoing for several years.

She explained that since 2017, workers have held a Collective Labour Agreement (PKB) with the company. One provision of this agreement obligates the company to convert contract workers to permanent employees after a specified period of service.

“These colleagues continue to be given short contract extensions. One month, one month, one month, and now some have only been offered three days,” she told Kompas.com on Thursday.

Dispute escalates through legal channels

Lindah said workers initially rejected contract renewal in 2023 and demanded the company fulfil its obligation to convert them to permanent status. The dispute then progressed through negotiation and into the courts. According to Lindah, their union won a court ruling in late 2024.

However, the company has not yet implemented the ruling, citing the case’s status in the cassation phase.

The conflict intensified ahead of the Lebaran holiday period. Lindah revealed that the company demanded workers sign resignation letters.

“The company said that since no one wanted to resign, and I myself refused to resign, they decided not to provide the THR. They said the remaining monthly wages would not be given,” she said.

“The THR and wages will not be provided if employees do not sign the resignation letter,” Lindah added.

According to Lindah, this situation placed considerable pressure on workers. She estimated that over 100 workers ultimately decided to resign.

Workers demand job security

Meanwhile, the remaining workers chose to conduct a strike until Tuesday, 17 March 2026, demanding certainty regarding their employment status before returning to work.

“Give us job security first,” she said.

Lindah noted that the majority of workers at the factory are women who are the primary breadwinners for their families. Consequently, employment uncertainty is considered to have a significant impact on their economic circumstances.

“How will they continue their lives? Setting aside Lebaran, uncertainty about work itself becomes a burden. How do they pay rent, pay for school, and put food on the table for their families?” she added.

Kompas.com attempted to contact the company for explanation regarding the strike but has not received an official statement as of publication.

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