Mass Layoffs Strike Again, Hundreds Affected in Depok: Workers' Statement
Jakarta, CNBC Indonesia – Threats of layoffs and factory closures continue to loom over Indonesia, with digital imaging and electronic circuit assembly (PCB) manufacturer PT Xacti Indonesia officially closing operations and laying off 350 workers last Friday (22 May 2026).
President of the Indonesian Workers’ Confederation (KSPI) and Labour Party leader Said Iqbal confirmed the permanent closure of the factory and layoffs at Xacti Indonesia.
“We confirm that approximately 350 employees at PT Xacti Indonesia, based in Depok, West Java, have been laid off and the company has completely ceased operations,” said Said Iqbal at a press conference on Monday (25 May 2026).
“Xacti Indonesia was a member of KSPI, specifically the Indonesian Metal Workers’ Federation (FSPMI). However, over the past two months, it has ceased active membership in KSPI and FSPMI as it prepared for permanent closure,” Iqbal added.
“Xacti Indonesia was a KSPI member via FSPMI, but has not been active for two months in union membership, so our support for Xacti Indonesia has concluded following the company’s closure and the layoff of 350 workers,” he continued.
“The closure and layoff process was negotiated between company management and workers, with employees receiving severance pay twice the statutory minimum under current Labour Law,” he added.
“There was a negotiated agreement between Xacti Indonesia’s workers’ union and management, with laid-off staff receiving severance pay double the Labour Law requirement. For instance, the standard is one month’s salary per year of service, so for two years’ service, two months’ pay, doubled. However, for eight years or more, the maximum is nine months’ salary regardless of tenure, which is then doubled,” he explained.
“Workers also receive service awards and compensation for entitlements following the layoffs.”
“They will also receive service bonuses and compensation for entitlements, including separation pay, as agreed between the union and management,” he said.
“Said Iqbal also cited global instability due to the Middle East conflict as the reason for Xacti Indonesia’s closure and layoffs, leaving the company unable to sustain operations.”
“The closure of Xacti Indonesia, as KSPI previously stated in early or late April, is part of a predicted 10 companies facing layoffs within three months due to the Iran-US-Israel conflict, which has created uncertainty over the war’s end, driving up raw material and logistics costs. Additionally, the company has become uncompetitive as global demand for camera and related exports has weakened due to the war,” he explained.