PT Samwon Busana Jepara Officially Closes on 1 August, 685 Workers Laid Off

JEPARA – PT Samwon Busana Indonesia Jepara officially ceased its business operations on 1 August 2026. The garment company closed after continuing losses and had to terminate the employment of 685 workers.

Zamroni Lestiaza, Head of the Cooperatives, SMEs, Manpower and Transmigration Office of Jepara Regency, confirmed that PT Samwon was officially no longer operating. “As of 1 August, the one in Jepara is no longer operational, it has closed,” he said in an interview on Tuesday (4/8/2026).

According to Zamroni, PT Samwon has also fulfilled its obligations to the workers affected by the layoffs. “Everything was settled on 31 July (2026) in accordance with the original plan. The total came to 685 workers,” he said.

He explained that in meeting the workers’ severance entitlements, PT Samwon applied Government Regulation (PP) Number 35 of 2021, which derives from the Job Creation Law. The multiplier used to determine the severance amount was 0.5 (0.5 x length of service x monthly wage).

Zamroni acknowledged that PT Samwon, a foreign direct investment (PMA) company from South Korea, had sought legal certainty regarding the layoffs. This was because of the Constitutional Court’s ruling that the Job Creation Law was conditionally unconstitutional.

“Essentially, they asked for certainty — what exactly is the legal certainty in Indonesia? Why is it inconsistent? So right up to the deadline, there was actually no explanation they could use as a reference. So they stuck with the provisions of PP Number 35,” said Zamroni.