Ministry of Industry clarifies layoffs at Mie Sedaap factory

Jakarta (ANTARA) - The Ministry of Industry (Kemenperin) has provided clarification regarding the issue of layoffs at the Mie Sedaap factory in Gresik, East Java, stating that there were no layoffs of permanent workers, but rather a reduction in outsourced workers as production normalises after a surge in seasonal demand.

Kemenperin’s spokesperson, Febri Hendri Antoni Arif, stated in Jakarta on Thursday that his office had requested a direct explanation from the company in question.

According to him, the company had previously increased its production capacity in anticipation of religious holidays due to a surge in demand.

To meet this increase in production, the company recruited a number of outsourced workers.

Febri explained that a similar pattern occurs in a number of labour-intensive industries, including the food and beverage and tobacco industries.

In the tobacco industry, for example, labour absorption increases during the harvest season and when production is high. After the production period ends, temporary additional workers are usually terminated according to their contracts.

He explained that before religious holidays, industries generally increase production about two months in advance to anticipate the surge in demand, with peak production occurring about a month before the celebration.