Ministry of Industry Clarifies Sedaap Noodle Worker Termination Controversy
The Ministry of Industry has clarified the controversy surrounding worker terminations at the Mie Sedaap noodle factory in Gresik, East Java, asserting that no permanent employees were laid off. Rather, the company reduced its outsourced workforce as production normalised following a seasonal demand surge.
Ministry of Industry spokesperson Febri Hendri Antoni Arif stated that the ministry had requested direct clarification from the company. According to him, the company had previously increased production capacity ahead of religious holidays due to a surge in demand. To meet the increased production requirements, the company recruited several outsourced workers rather than permanent staff.
“They increased their production ahead of religious holidays and to meet this increased production they recruited several outsourced workers, not permanent workers, and this production is typical of the food and beverage manufacturing sector, which faces seasonal demand,” Febri said in Jakarta on Friday, 27 February 2026.
Febri explained that a similar pattern occurs across numerous labour-intensive industries, including the food and beverage and tobacco sectors. In the tobacco industry, for example, workforce absorption increases during harvest season and high production periods. Once production concludes, temporary supplementary workers are typically dismissed in accordance with their contracts.
He elaborated that before religious holidays, industries typically increase production approximately two months beforehand to anticipate demand surges, with peak production occurring roughly one month before the celebration. After this period, production volume returns to normal levels.
Prior to these clarifications, social media circulated information that approximately 400 workers at the Mie Sedaap manufacturer had been sent home several days before the onset of Ramadan. In a social media post, hundreds of these workers received termination notices only via WhatsApp messages, despite their employment contracts remaining valid.
PT Karunia Alam Segar (PT KAS), the manufacturer of Mie Sedaap, has confirmed that its factory operations continue normally and that it has not terminated employees at the Gresik facility. Peter Sindaru, Human Resources and General Affairs manager at PT Karunia Alam Segar, stated in a statement received in Jakarta on Wednesday (25 February) that production activities were proceeding as planned, with adjustments made to align with market demand dynamics as part of its labour-intensive manufacturing operations.