Labour Leader's Leak: 10 Companies in Indonesia to Close in the Next Three Months

Jakarta, CNBC Indonesia - The President of the Indonesian Confederation of Trade Unions (KSPI) and President of the Labour Party, Said Iqbal, has leaked information on the potential wave of company closures and layoffs (PHK) in the next three months.

According to him, there are around 10 companies in various industrial sectors that could halt operations due to pressure from production costs and the impact of the ongoing global war.

This was stated by Said Iqbal in response to denials from the Indonesian Association of Olefin, Aromatic, and Plastic Industries (Inaplas) regarding the issue of mass layoff threats in the industrial sector.

“All business owners would avoid layoffs if possible, so it’s unlikely they would admit to PHK,” said Said Iqbal to reporters when met at the Ministry of Manpower office in Jakarta on Thursday (7/5/2026).

He said the potential company closures are spread across several major industrial areas on Java Island, from West Java, Central Java, Banten to parts of DKI Jakarta.

“We’ll wait for the next three months; there are 10 companies likely in the textile, garment, plastic, and electronic component industries that will close in West Java, Central Java, Banten, and parts of DKI,” he stated.

Said Iqbal assessed that this threat is inseparable from the impact of the global war that continues to this day and triggers an increase in energy costs for industry. “That’s a possibility if the war continues. Because energy costs are high,” he said.

Said Iqbal did not detail the identities of the companies in question. However, he signalled that pressure on labour-intensive sectors is currently intensifying, especially industries that heavily depend on energy costs and export demand.

Previously, the issue of mass layoffs has indeed been a concern amid the slowdown in the national manufacturing industry. Several sectors such as textiles, garments, and steel are said to be facing pressure due to weakening market demand, an influx of cheap imported products, and rising production costs.

Not long ago, PT Krakatau Osaka Steel (KOS) was also reported to be halting production and preparing to close operations in June 2026. This situation has raised concerns about an additional wave of layoffs in the domestic industrial sector.