Two Garment Companies in Central Java Go Bankrupt, Over 1,400 Workers Face Layoffs
SEMARANG – Two garment companies in Central Java, PT Victory Apparel Semarang and PT Samwon Busana Indonesia Jepara, have gone bankrupt. More than 1,400 workers at the two companies are certain to face redundancy (PHK).
Ahmad Aziz, head of the Central Java Provincial Manpower and Transmigration Office (Disnakertrans), said PT Victory and PT Samwon had halted their business operations after incurring losses. “PT Samwon has suffered losses for five consecutive years, whilst PT Victory Apparel, if I’m not mistaken, has faced losses since the end of 2025,” he said in an interview on Thursday (23 July 2026).
Aziz explained that the losses suffered by PT Samwon and PT Victory were caused by several factors. “They were hit by the impact of Covid-19. After that, there were ongoing effects related to buyers and raw materials,” he said.
He added that 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 measures to keep operations going. “We made clear that redundancy is a last resort, and closure is a last resort. These two companies closed their operations only after going through several stages: some workers were furloughed, working hours were reduced, and overtime pay was eliminated. That process had already been carried out,” he said.
Aziz revealed that PT Samwon will officially cease operating on 1 August 2026. As for PT Victory, Aziz said he had not yet received the latest information on when the company would shut down its operations.
Nevertheless, he confirmed that both companies are currently undergoing mediation with their workers regarding the fulfilment of their rights after being made redundant. According to Aziz, the mediation process is also being accompanied by local Disnaker teams in each area.
He said 807 workers at PT Victory will be affected by the redundancies. “Of those 807, 407 have already reached agreements with the company management. And of those 407, 200 have accepted terms of 0.5 times severance pay, with their rights fulfilled in accordance with the Job Creation Law,” he said.
Around 200 other workers are still negotiating. “Because beyond the 0.5 times severance pay, they are also asking for a little extra,” Aziz said.
Meanwhile, around 400 other PT Victory workers will go through the settlement and rights fulfilment process in a second stage. The number of PT Samwon workers facing redundancy, according to Aziz, stands at around 600 people.
Aziz stressed that his office will continue to monitor the process of fulfilling the rights of PT Samwon and PT Victory workers affected by the redundancies.