Industry Ministry Prepares Mitigation, Supports PT Pakerin Recovery
The Ministry of Industry (Kemenperin) is preparing mitigation measures while supporting the operational recovery of PT Pakerin following reports concerning its production facilities and potential layoffs (PHK).
Ministry spokesperson Febri Hendri Antoni Arif confirmed on Thursday that the ministry had summoned PT Pakerin’s management to obtain clarification regarding the company’s operational condition. The summons was a direct follow-up to an instruction from Industry Minister Agus Gumiwang Kartasasmita to the Acting Director General of Agro Industry to respond to the circulating reports and prepare necessary support for the company.
The purpose of the summons was to clarify reports related to production operations and to swiftly take measured mitigation steps. PT Pakerin’s Chief Financial Officer attended the meeting with the Acting Director General of Agro Industry at the Ministry of Industry’s office in Jakarta on Tuesday (23/6).
The meeting revealed that PT Pakerin has two main production lines: cardboard paper for consumer packaging and caustic soda (NaOH). The cardboard paper produced is used as raw material for packaging various consumer products, while caustic soda is utilised as an industrial auxiliary material, for household needs, and in laboratories.
Currently, the caustic soda production line is still operating normally. However, the cardboard paper production line has been temporarily halted since December 2024 due to the company’s internal issues, Febri stated. Despite this, PT Pakerin’s management affirmed that it is continuing internal consolidation and striving to fulfil its obligations to its workforce.
In line with the company’s financial recovery process, positive signals have begun to emerge regarding the settlement of workers’ rights, which has been a concern for various parties. PT Pakerin also plays an important role in supporting the regional economy by empowering communities around the factory area. The company’s presence is considered to have a significant economic impact on its surrounding environment.
As a form of support for the company’s recovery process, the Ministry of Industry expressed its commitment to help reactivate the currently non-operational cardboard paper production line. “The Directorate General of Agro Industry has received an explanation from PT Pakerin. The Ministry of Industry supports the recovery of the company’s production line operations and the fulfilment of obligations towards workers’ rights. On that occasion, the ministry also conveyed that we have proposed the fulfilment of raw material needs for their cardboard paper production facility,” Febri said.
Furthermore, he stated that the Industry Minister has instructed all ranks of the ministry to continue monitoring the performance of national industries and to respond swiftly to any information regarding factory closures or potential layoffs. These rapid and measured mitigation steps are expected to prevent the cessation of domestic production facility operations and maintain the sustainability of the national manufacturing sector.
“The Minister has ordered all ranks to monitor the performance of national industries and to take rapid mitigation steps for industries experiencing disruptions in supply chains or demand,” Febri said. The Ministry of Industry affirmed its commitment to maintaining a conducive business climate, monitoring production stability, and strengthening coordination with industry players to ensure investment sustainability and workforce protection, so that national industries remain able to compete in the global market.