Two Garment Companies in Central Java Go Bankrupt, Over 1,400 Workers Face Layoffs

Two garment companies in Central Java, PT Victory Apparel and PT Samwon Busana Indonesia Jepara, have gone bankrupt, leaving more than 1,400 workers facing termination of employment. The Head of the Central Java Provincial Manpower and Transmigration Office, Ahmad Aziz, stated that PT Victory and PT Samwon halted their business operations after sustaining losses. “PT Samwon experienced losses for five consecutive years. Meanwhile, PT Victory Apparel has been facing losses since the end of 2025, if I am not mistaken,” he said in an interview on Thursday (23/7/2026). Aziz explained that the losses suffered by PT Samwon and PT Victory were caused by several factors. “They were affected by the impact of Covid. After that, there were ongoing impacts related to buyers and raw materials,” he said. He added that both PT Samwon and PT Victory had been audited by a public accounting firm. “The results confirmed that both companies are indeed making losses,” Aziz said. According to Aziz, before deciding to close their businesses, PT Victory and PT Samwon had taken various steps to maintain their operations. “We have said that layoffs are the last resort, closure is the last resort. And these two companies closed their businesses, closed their operations, after going through several stages; some employees were furloughed, some had their working hours reduced, and overtime pay was eliminated. That process has been carried out,” he said. Aziz revealed that PT Samwon will officially cease operations on 1 August 2026. Meanwhile, for PT Victory, Aziz admitted he has not yet received the latest information regarding the timing of the company’s operational closure. However, he confirmed that both companies are currently undergoing a mediation process with workers regarding the fulfilment of their rights after being laid off. According to Aziz, the mediation process is being assisted by the local Manpower Office teams. He disclosed that 807 workers at PT Victory will be affected by the layoffs. “Of the 807, 407 have already reached an agreement with the company’s management. And of the 407, 200 have accepted the terms of 0.5 times severance pay and their rights being fulfilled in accordance with the Job Creation Law,” he said. Around 200 other workers are still negotiating. “Because besides the 0.5 times severance pay, they are also asking for a small additional amount,” Aziz said. The remaining approximately 400 workers of PT Victory will undergo the settlement and rights fulfilment process in the second phase. Meanwhile, Aziz said the number of PT Samwon workers who will face layoffs reaches around 600 people. Aziz stressed that his office will continue to monitor the process of fulfilling the rights of the affected workers of PT Samwon and PT Victory.