Not Raw Material Issues—This Is Why a NIKE Supplier Factory Sent 4,000 Workers Home

Jakarta, CNBC Indonesia - As many as 4,000 workers at a NIKE shoe supplier factory in Bandung Regency have been furloughed since 15 June 2026. It was previously stated that the situation was caused by disruptions in the factory’s raw material supply. However, after further communication, it has emerged that the main reason the factory had to send workers home is a different issue. “It needs to be clarified that the cause of workers at the NIKE shoe factory being furloughed is actually due to an order gap or a lull in orders. It is not because of raw material delays,” said Ristadi, President of the Confederation of Nusantara Trade Unions (KSPN), to CNBC Indonesia on Tuesday (23/6/2026). “I initially received that technical information (that workers were furloughed due to raw material problems) from the Head of the KSPN Regional Board for Bandung Regency. I then cross-checked with the KSPN Chair at the factory. And it turned out the results of that cross-check still needed clarification regarding the cause of the workers being furloughed,” he added in explanation. Ristadi stressed that the company’s move to furlough workers was taken to prevent termination of employment (PHK). In this case, he said, workers are given leave on what would normally be working days, rather than being placed on rotating suspension. “This action is usually taken for four reasons: a decline in turnover or orders, or even no new orders yet; the company is experiencing losses and implementing efficiency measures; a force majeure event, such as a natural disaster, fire, or machinery breakdown; or because the company is in a restructuring process,” Ristadi explained. He continued that regardless of whether the factory workers are furloughed or on rotating suspension, the focus must be on preventing layoffs. Ristadi expressed hope that the fate of the furloughed workers does not end tragically. “I am grateful the government has stepped in to cross-check as an effort to anticipate further impacts, namely layoffs. I hope that is the case, and that it is not merely a stage show that fails to prevent layoffs, like the PT Sritex case,” Ristadi concluded.