PT Xacti Indonesia Lays Off 350 Workers, Closes Depok Factory
Depok – PT Xacti Indonesia announced the closure of its factory in Depok, West Java, and the termination of employment for 350 workers. The decision was announced by the President of the Indonesian Workers’ Confederation (KSPI), Said Iqbal, at a press conference on Monday (25 May).
Said Iqbal explained that the factory closure and layoffs were due to economic uncertainties at both global and domestic levels. He stated that the company could not sustain operations amid escalating economic pressures.
PT Xacti Indonesia, also known as PT Sanyo Group, operates in the electronics manufacturing sector, specialising in digital imaging devices. The news of the layoffs came from union members who reported receiving prior warnings before the decision was made.
“Indeed, 350 workers at PT Xacti Indonesia have been laid off, with the company completely closing operations,” said Said Iqbal. He stressed that the information was not speculation but based on direct reports from union members.
For the past two months, PT Xacti Indonesia has ceased to be an active member of KSPI and the Indonesian Metal Workers’ Federation (FSPMI), as the company is in the process of permanently closing operations.
“With fuel prices rising, companies have no choice but to implement fuel efficiency measures,” he explained. However, in PT Xacti Indonesia’s case, these measures were insufficient to prevent closure.
On a broader scale, the factory closure reflects the challenges faced by Indonesia’s manufacturing sector. Rising production costs and global market uncertainties serve as warning signals for other businesses.
Impact of Xacti Indonesia’s Closure on the Industry
Indonesia’s electronics industry growth may be affected by PT Xacti Indonesia’s closure. With 350 jobs lost, the impact extends beyond individuals to the surrounding business ecosystem.
PT Xacti Indonesia’s decision to halt operations in Depok highlights the vulnerability of the manufacturing sector to global economic shifts, indicating the need for better adaptation strategies among companies in the sector.
Business Strategies to Tackle Economic Uncertainty
Manufacturing sector businesses must prepare for similar challenges. Diversifying products and markets can be an initial step to mitigate risks.
Companies must enhance communication with labour unions to ensure transparent information flow, which helps minimise negative impacts on employees and build organisational trust.
Looking Ahead at Market Conditions
In the long term, businesses are expected to learn from PT Xacti Indonesia’s experience. Tackling economic uncertainty requires sustained resilience and innovation.
Indonesian companies must consider strategic steps to strengthen their position in increasingly competitive markets. Xacti Indonesia’s closure serves as a valuable lesson for other industries.