Ministry of Industry Moves to Mitigate Layoffs at Jepara Garment Unit

The Ministry of Industry (Kemenperin) has responded swiftly and prepared mitigation measures to protect the textile and textile product (TPT) industry, following the cessation of operations at PT Samwon Busana Indonesia’s Jepara Unit and reports of layoffs at the production facility. Kemenperin Spokesperson Febri Hendri Antoni Arif stated that the ministry, through the Directorate General of Chemical, Pharmaceutical, and Textile Industries (IKFT), is taking measured steps to handle the situation. “We are clarifying that the business entity PT Samwon Busana Indonesia is not leaving Indonesia or closing down entirely, but is undergoing operational restructuring at the Jepara Unit. Nevertheless, the fate of the approximately 670 affected workers in Jepara remains our priority. Kemenperin has summoned PT Samwon’s management to sit together, request data clarification, and execute comprehensive mitigation measures to minimise the social and economic impact,” Febri said in a confirmed statement in Jakarta on Tuesday. He explained that, based on Kemenperin’s initial investigation, the information circulating in the public needs to be corrected. The plan to cease operations by 1 August 2026 only covers the Jepara Unit, which employs around 670 workers, not the entire closure of PT Samwon Busana Indonesia. On the contrary, the Semarang Unit remains actively operating and has even recently increased its electrical capacity by 56 percent, from 555,000 VA to 865,000 VA on 16 July 2026, to support increased production capacity and export activities. To address the closure of the Jepara Unit while maintaining the national garment industry climate, Kemenperin has established a number of short- and medium-term mitigation measures. First, Kemenperin summoned PT Samwon Busana Indonesia’s management to request official clarification regarding the causes of the Jepara Unit’s losses, the fulfilment of workers’ rights, and an evaluation of plans to transfer or consolidate orders and machinery to the Semarang Unit facility. Second, Kemenperin is ensuring the fulfilment of workers’ rights by coordinating closely with the Ministry of Manpower and local manpower offices to oversee the industrial relations settlement process. Kemenperin is ensuring that the severance pay formula and all workers’ rights are fulfilled fairly and transparently in accordance with applicable legal provisions. Third, the ministry is mapping the re-absorption of labour by involving the Industrial Human Resources Development Agency (BPSDMI), the Indonesian Textile Association (API), Apindo, and other garment companies in the Central Java region to open up opportunities for the redeployment of skilled workers affected by the layoffs. Fourth, Kemenperin is securing export orders and communicating with the company’s group headquarters in South Korea to maintain sustainable investment commitments in Indonesia. The ministry is also approaching major buyers from the United States to ensure that garment orders remain in the country and are not diverted to competitor nations. The ministry hopes these strategic measures will provide legal certainty and protection for affected workers, while maintaining the stability of the investment climate and the export performance of the national textile and textile product industry.