Presidential Advisor Finds Irregularities in Cimahi Garment Company's Mass Layoffs

A representative of the Presidential Advisory Council on Labour and Workers’ Welfare, Dadan Sudiana, conducted a spot inspection at PT Namnam Fashion Industries in Cimahi, West Java, on Thursday following the mass termination of 178 employees. Based on data from the Cimahi City Manpower Office, the layoffs were carried out in two waves: 92 workers on 17 June 2026 and a further 86 workers on 31 July 2026.

During the inspection, Dadan identified irregularities after examining the company’s financial records. He stated that PT Namnam had experienced a decline in profit rather than an actual loss from its garment operations. A decline in profit means the company was still generating earnings, albeit less than in previous periods, whereas a loss would indicate that operational costs exceeded revenue.

“There is a discrepancy in the information we received. I requested the audited financial report from a public accountant, and I saw a reduction in profit, not a loss,” Dadan explained. Under these conditions, he argued, the affected workers should have received severance pay at the full rate stipulated by Government Regulation No. 35 of 2021, rather than half the rate. He noted that while there was an agreement between the company and workers for the reduced payout, the workers’ bargaining position was inherently weak. “I assess that the termination, based on efficiency to prevent losses, should warrant one times the provision, not half. This is not fair, especially since the company has been operating for decades,” he said.

Dadan added that the findings would be reported to Presidential Advisor Said Iqbal and subsequently forwarded to President Prabowo Subianto to seek the best solution. He indicated that the company still has contract workers completing remaining orders and suggested that production could continue, allowing the business to retain its workforce and provide the full severance entitlement. “I will review the next steps with Mr Said Iqbal. I believe the company can still be saved if the owners are willing to make other efforts, because layoffs should truly be a last resort,” he concluded.