Four Companies Face Mass Layoff Threats, Said Iqbal Names Names

President of the Indonesian Trade Union Confederation (KSPI) and President of the Labour Party, who also serves as Special Adviser to the President of the Republic of Indonesia on Employment and Labour Welfare, Said Iqbal, stated that the government and trade unions are taking mitigation steps to prevent a wave of layoffs amid the threat of global economic uncertainty caused by the war involving the United States, Israel, and Iran. Said Iqbal revealed that field visits in East Java, West Java, and Jakarta showed a real impact from the prolonged war. “The findings are indeed true. As a result of the war between Iran and America and Israel, which has caused global economic uncertainty, it has greatly affected export-oriented companies and companies whose raw materials come from imports. Demand for goods from abroad has decreased, so company production has also decreased,” he explained in a written statement quoted on Monday (22/6/2026).

One of the companies visited was PT Pakerin in Mojokerto, East Java. Said Iqbal came directly to the location accompanied by FSPMI, the East Java Provincial Manpower Office, the Mojokerto Regency Manpower Office, and the Regional Secretary of Mojokerto. “We came to the factory which had stopped operating and met directly with the workers. It was found that there is a potential threat of layoffs for 2,500 workers,” he said. He explained that the main problem stems from the company’s working capital funds stored in a bank that has been liquidated by the Deposit Insurance Corporation (LPS). “PT Pakerin’s funds of around Rp800 billion to Rp1 trillion are under the supervision of the OJK. As a result, production is not running because the LPS has not yet released these funds,” he said. He also found that the economic impact had spread to the surrounding community. “I visited the market near PT Pakerin and many stalls were closed. This proves that when a company stops operating, not only are the workers affected, but also the economy of the surrounding community,” said Said Iqbal. For this case, several mitigation steps have been taken. “First, coordinating with the Director General of PHI at the Ministry of Manpower and the East Java Provincial Government to ensure that if layoffs occur, all workers’ rights and ongoing wages are paid through a special escrow account so that they do not enter the company’s account, which is feared will be used for other purposes.” “Second, I reported this issue to the President and copied the report to the Minister of State Secretary and the leadership of the Indonesian House of Representatives (DPR RI) to summon the LPS in order to save the workers’ rights,” he continued.

Meanwhile, in West Java, Said Iqbal found a potential threat of layoffs for around 4,000 workers at PT Fengtai, Bandung Regency. “Initial information we received from the trade union and journalist colleagues stated that around 4,000 workers are potentially affected. They are currently furloughed, not yet laid off,” he explained. Based on initial findings, there are two main causes. “First, the Nike shoe order at PT Fengtai has been completed and there is no certainty of the next order. Second, there is a delay in the supply of raw materials due to the war situation, which has caused distribution to be diverted to other suppliers,” he said. Said Iqbal stated that he will go directly to PT Fengtai in Banjaran, Soreang, Bandung Regency. “On Monday I will come to PT Fengtai accompanied by the central Ministry of Manpower. The Director General of PHI has dispatched two of his directors. The West Java and Bandung Regency offices have also been informed. I am also inviting the trade unions at the company and trade unions in West Java to be involved.” Several mitigation steps to be taken include: the government helping to resolve the problems faced by the company, including utilising the code of conduct mechanism owned by multinational companies such as Nike, Adidas, and Uniqlo; the government together with the trade unions will ask the company, including writing to Nike, to extend and increase orders at PT Fengtai; reporting to the President regarding the possibility of granting tax relaxation to the company so that production activities can continue and thousands of workers can return to work; and during the mitigation process, all workers’ rights must still be fulfilled. “4,000 employees must not lose their rights. Wages must continue to be paid in full because there is information that furloughed workers are only paid 50%,” stressed Said Iqbal. He added that the efforts being made are not to find fault with the company. “We are not correcting the company’s mistakes, but we want to help the company and ensure that workers’ rights are obtained. The goal is no layoffs,” he stressed.

In East Java, precisely in Pasuruan and Mojokerto, Said Iqbal also found potential threats to two automotive component companies employing thousands of workers. The two companies are PT J and PT S. “Initial information shows that the prolonged war situation has made the principal from Japan plan to move its investment to another country and focus more on developing electric cars in Vietnam,” he said. To anticipate this, several steps will be taken. “The trade union will negotiate with the company to convince them not to move to Vietnam. From there, I will communicate with the DPR and the President to push for policies that favour the development of the electric car industry in Indonesia,” he explained. Said Iqbal emphasised that the strategy used is to visit locations with potential layoffs directly, not wait for the problem to grow. “I propose a strategy of not waiting, but going. The government together with the trade unions, especially KSPI, have carried out initial mitigation to ensure there are no layoffs,” he said.