Refuting Presidential Envoy, PT Namnam Insists It Incurred Losses Forcing Layoffs

PT Namnam Fashions Industries has finally spoken out regarding the termination of employment of 178 of its workers. The company says it has incurred losses, prompting it to halt production in the garment sector after decades of operation.

The statement rebuts the findings of the President’s Special Envoy for Manpower and Workers’ Welfare, who said the company had not suffered losses but had merely experienced a decline in profits over the past three years.

“Given the truly real condition in which our company has suffered losses for two to three consecutive years,” said Marketing Manager of PT Namnam Fashion Industries, Sandi Irawan, when contacted on Saturday (15/8/2026).

He said the losses suffered by the company had been calculated by a public accountant. PT Namnam Fashion Industries is therefore willing to have its financial condition audited by any relevant institution.

In light of this situation, the company could only provide severance pay at 0.5 times the statutory requirement. Sandi said the amount had been mutually agreed with the affected employees, and that all workers’ entitlements had been fully disbursed.

“We were forced to provide 0.5 times severance because that is what we were able to afford, as set out in a mutual agreement with all the employees concerned. Thank God, all employee severance payments have been paid,” Sandi said.

Head of Industrial Relations and Social Security at the Cimahi City Manpower Office, Muhammad Faisal, said there are still 101 employees on fixed-term employment contracts who remain at the company and whose contracts will expire this month.

“The latest layoffs affected management. Those on fixed-term contracts are waiting until the end of the month. Their entitlements will be paid in accordance with the rules,” he said.