Indonesian Political, Business & Finance News

West Java Governor Says Mass Layoffs in Garment Industry Part of Business Cycle

| | Source: REPUBLIKA Translated from Indonesian | Economy
West Java Governor Says Mass Layoffs in Garment Industry Part of Business Cycle
Image: REPUBLIKA

West Java Governor Dedi Mulyadi has said the phenomenon of mass layoffs in the garment industry due to production shutdowns is part of the business cycle. However, he stressed that job opportunities in other industrial sectors in West Java remain wide open. “Garment is always a problem. The sector is usually labour-intensive. Labour-intensive companies are generally like that,” said the man familiarly known as KDM when met in Cimahi City on Tuesday (4/8/2026). KDM’s statement came after news of mass layoffs of workers at PT Namnam Fashion Industries on Jalan Mahar Martanegara, Cigugur Tengah Village, Central Cimahi District, went viral on social media. In circulating videos, workers appeared to be crying and hugging each other after losing their jobs. KDM said garment companies that have reached their break-even point can choose to move production to other areas with lower labour costs. “If it has reached break-even point, and then there is another place with cheaper labour, it usually moves. That has happened everywhere,” he said. According to KDM, this condition differs from capital-intensive industries, which tend to have long-term investment characteristics. Therefore, workers in the garment sector need to understand that industrial locations change over time. “So, they do not make this company permanent like a capital-intensive industry. If there is a labour-intensive industry in the garment sector, you have to be careful that within a cycle of several decades it will definitely close,” said Kang Dedi Mulyadi. On that occasion, KDM assured that workers still have access to new employment. He said there are currently many job opportunities available in West Java, especially in industrial areas that continue to grow in several regions. “There are also many new jobs today. Many job opportunities are open in West Java. Today, industries are starting to grow, industrial areas are starting to grow,” he said. However, the location of industrial growth is now beginning to shift from old industrial areas such as Bandung, Karawang, Purwakarta, and West Bandung towards areas with lower labour costs. KDM cited Indramayu, Garut, and Majalengka, which are now opening many jobs in the footwear and garment sectors. “Recruitment for the shoe sector, like in Indramayu, is very high. In Garut it’s high, in Majalengka it’s high. So the areas are shifting,” he said. This shift means workers who wish to remain in the garment sector must consider seeking work in other districts. Dedi confirmed that job opportunities in West Java’s industrial sector remain wide open. He specifically mentioned Indramayu as an area requiring a large workforce. “Inevitably, those working in the garment sector, if they want to keep working in that sector, must shift to other districts. There are many. In Majalengka, Indramayu, there are many. Indramayu needs tens of thousands of workers for the footwear and garment sectors. Many,” he concluded. Head of the Cimahi City Manpower Office, Asep Jayadi, said that based on preliminary information received, 178 employees were affected by the production halt at PT Namnam Fashion Industries. “According to information in the field, there were indeed layoffs, totalling 178 people,” Asep said. He said the production halt occurred because the company could no longer sustain its garment business. However, to ascertain the exact cause, the Cimahi City Manpower Office is still conducting an investigation. “They said there were efficiencies due to losses, they could no longer sustain garment production, and they plan to change their business type. We are still investigating to confirm this,” he said.

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