Thousands of garment workers in Central Java face layoffs, government intervention urged

Presidential Special Adviser on Labour and Workers’ Welfare Said Iqbal has urged the government to move quickly to prevent a wave of layoffs threatening thousands of workers in the garment industry in Central Java. “If the companies can still be saved, they must be saved. If they require policy intervention, the state must be present,” Iqbal said in Jakarta on Wednesday. He revealed there is a potential wave of terminations at two garment and textile companies in Central Java that could affect nearly 1,500 workers. The information was received from the Central Java Labour Union Management. Based on initial reports, PT Victoria Apparel in Semarang, a company with Chinese investors, is at risk of laying off around 800 workers. Meanwhile, PT Samwon in Jepara, which has South Korean investors, is reportedly planning to terminate approximately 670 workers. Iqbal said he would immediately report the developments to the Head of the Layoff Task Force, State Secretary Minister Prasetyo Hadi. “I will report this matter to the Head of the Layoff Task Force so that rescue measures can be taken immediately. The state must be present when companies face difficulties and workers are threatened with losing their livelihoods,” he said. He also announced plans to visit PT Victoria Apparel in Semarang and PT Samwon in Jepara on Monday, 27 July 2026, to gain a comprehensive picture of the companies’ conditions and to seek the best solutions together with management, trade unions, and local governments. Iqbal reiterated President Prabowo Subianto’s directive that the main priority is to prevent layoffs. “The business world must continue to operate, but workers must also be protected from termination,” he stated.