Jakarta, ThedailyID – More than 6,500 workers have lost their jobs after two major manufacturing companies in Indonesia shut down operations in Mojokerto, East Java, and Bandung, West Java. The closures mark another setback for Indonesia’s labor-intensive manufacturing sector, which continues to face mounting economic pressure.
According to the Ministry of Manpower, around 4,000 employees lost their jobs after PT Yihong Novatex Indonesia ceased operations in Mojokerto. Meanwhile, another 2,500 workers were laid off following the closure of PT Danbi International in Bandung.
The ministry said both companies halted operations due to business difficulties. Officials are now coordinating with local governments and related agencies to ensure affected workers receive their employment rights, including severance pay and access to government assistance programs.
Authorities also plan to connect former employees with new job opportunities through employment services and vocational training programs. The government hopes these measures will help workers return to the labor market more quickly.
The latest closures have renewed concerns over Indonesia’s manufacturing industry, particularly labor-intensive sectors such as textiles and footwear. Rising production costs, weakening global demand, and intense competition have placed significant pressure on many factories over the past few years.
Industry observers warn that additional companies could face similar challenges if economic conditions do not improve. They have urged the government to strengthen industrial competitiveness, expand export opportunities, and provide greater support for businesses struggling with rising operational costs.
The layoffs also highlight the broader impact on local economies. Thousands of affected workers now face uncertainty as they search for new employment while supporting their families.
The government said it will continue monitoring developments and work with stakeholders to minimize further job losses while protecting workers’ rights.
