Mie Sedaap Reinstates 400 Gresik Workers After DPR Intervention and Union Pressure
DPR intervention and union talks secure jobs and THR payments
A controversial workforce reduction at a Mie Sedaap factory in Gresik has been reversed, with 400 workers set to return to their jobs after public backlash and parliamentary intervention.
Layoff Sparks Public Outcry
PT Karunia Alam Segar, a subsidiary of Wings Group and producer of Mie Sedaap, initially carried out workforce adjustments affecting around 400 employees at its Gresik plant ahead of Lebaran 2026. Management stated the move was due to production capacity adjustments driven by market demand, not related to Ramadan or efforts to avoid paying holiday allowances.
Human Resources and General Affairs representative Peter Sindaru explained that as a labor-intensive manufacturing business, staffing levels fluctuate based on operational needs. He said such adjustments are common industry practice and comply with existing labor regulations.
DPR Steps In Amid Ramadan Concerns
The decision drew criticism from labor groups and prompted a response from Indonesia’s House of Representatives. Deputy Speaker Sufmi Dasco Ahmad confirmed that DPR had coordinated with company management and secured a commitment to halt the layoffs.
Dasco emphasized that job terminations during Ramadan and before Idulfitri risk creating social unrest. He stated that the company agreed to stop further layoffs and ensure workers could observe the fasting month with peace of mind.
Union Confirms Workers Reinstated
The East Java Regional Board of the Federation of Indonesian Metal Workers Union said the issue was resolved after widespread attention, including media coverage. According to union representative Agus Supriyanto, Wings Group acknowledged procedural missteps in the initial decision-making process.
Following an internal evaluation by top management, the company decided to reinstate the affected workers. On February 24, 2026, in the presence of the East Java Manpower Office head, it was confirmed that all 400 workers would be re-employed.
THR Payments Guaranteed
Agus stated that the reinstated workers would receive their rights, including Tunjangan Hari Raya payments. Data collection for re-employment had already begun, and workers were gradually returning to their posts.
The assurance of THR payments addressed one of the primary concerns raised by employees, especially given the proximity to Lebaran celebrations.
Company Maintains Market-Based Rationale
Despite the reversal, management reiterated that workforce adjustments were not tied to any religious or seasonal momentum. Peter Sindaru stressed that staffing decisions are based solely on market dynamics, operational planning, and production forecasts.
The company also reaffirmed its commitment to maintaining harmonious industrial relations and complying with labor regulations.
The Mie Sedaap workforce dispute highlights the sensitivity of labor decisions during major religious periods in Indonesia. With strong public scrutiny and parliamentary oversight, companies are reminded of the social impact of employment policies. As Indonesia strengthens its industrial base alongside regional partners such as Singapore, stable labor relations remain essential to maintaining investor confidence and social stability.
Sources: CNN (2026) , CNBC (2026)
Keywords: Mie Sedaap PHK, 400 Workers Rehired, DPR Intervention, FSPMI East Java, THR Payment Guarantee