Garment Factory in Jepara to Close, 670 Workers Face Job Loss

As many as 670 workers in Jepara Regency face unemployment following the planned closure of a garment factory in the area in early August 2026. Hundreds of workers at PT Samwon Busana Indonesia in Damarjati Village, Kalinyamatan District, Jepara Regency, are growing anxious as the company where they work is set to shut down. Certainty about the closure of the South Korean-headquartered company came after representatives reported the plan to cease operations to the Jepara Regency Office of Cooperatives, SMEs, Manpower, and Transmigration. “We do not know what the future holds. The company is currently processing the layoffs and providing severance pay to workers,” a female worker said resignedly. Another worker, who declined to be named, revealed that the garment company in Jepara had been struggling for several years. Before the plan to close permanently in early August, it had already reduced its workforce by hundreds, and now the remaining hundreds will follow. Head of the Jepara Regency Office of Cooperatives, SMEs, Manpower, and Transmigration, Zamroni Lestiaza, confirmed the report, stating that the 670 remaining workers at the factory in Damarjati Village, Kalinyamatan District, Jepara, would be affected by the closure. “It is true that company representatives have reported the plan to close the PT Samwon Busana Indonesia factory in Jepara in early August 2026, so as a consequence, the hundreds of remaining workers will be impacted by layoffs,” Zamroni Lestiaza said. According to the report, the company has been suffering losses for the past five years. Various efforts were made to recover, including efficiency measures that saw 120 workers laid off some time ago. “But it still could not survive, until finally it closed,” he added. Regarding the layoffs of hundreds of workers, Zamroni Lestiaza urged the company to settle its obligations, namely severance pay, within the remaining days. However, the company could only afford to pay 50 per cent of the statutory requirement due to its losses. Facing the rising number of layoff cases, the Jepara district government has attempted to provide employment opportunities by holding a 2026 Job Fair offering 2,000 vacancies, which was accessed by 1,500 job seekers. “There are still job vacancies that have not been filled,” he added.