PT Yihong Layoffs: Menaker’s Surprising Reaction
- JAKARTA,Indonesia – More than 1,100 employees of PT Yihong Novatex Indonesia,a textile and footwear manufacturer located in Kanci Village,Astanajapura District,Cirebon Regency,have been terminated from their positions.
- The layoffs, which occurred in early March, prompted a response from Minister of Manpower Yassierli, who stated he is awaiting a formal report from the Cirebon Regency Manpower...
- “I am waiting for a report from the Cirebon Manpower Office,” Yassierli said Tuesday,April 8,2025,speaking to reporters in Jakarta.
Over 1,100 Workers Laid Off at Indonesian Textile Factory
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JAKARTA,Indonesia – More than 1,100 employees of PT Yihong Novatex Indonesia,a textile and footwear manufacturer located in Kanci Village,Astanajapura District,Cirebon Regency,have been terminated from their positions.
The layoffs, which occurred in early March, prompted a response from Minister of Manpower Yassierli, who stated he is awaiting a formal report from the Cirebon Regency Manpower Office to verify the details of the situation.
Minister Awaits Official Report
“I am waiting for a report from the Cirebon Manpower Office,” Yassierli said Tuesday,April 8,2025,speaking to reporters in Jakarta. “The office indicated they would be calling this week.”
Yassierli declined to provide specific details regarding the total number of affected workers or the precise reasons for the job cuts, citing conflicting reports. “I have received a report, but ther are two versions, so we must clarify. We’ve asked the office to call first. Just wait for the results,” he stated.
Strike Blamed for order Cancellations
teppy Wawan Dharmawan, Head of the West Java Province Manpower and Transmigration Office, previously attributed the layoffs to a decline in orders stemming from disruptions caused by worker strikes.
Dharmawan told reporters that the company’s legal counsel indicated the layoffs, impacting all 1,126 workers, took effect March 10, 2025. He explained that a strike from January 30 to February 1, 2025, and subsequent strikes on March 1, 3, and 4, 2025, led to order cancellations and the removal of machinery and raw materials by the employer.
Government Facilitation Efforts
The Cirebon Regency Government facilitated discussions regarding the industrial relations dispute at PT Yihong Novatex Indonesia on March 12, 2025. Representatives from various regional government bodies, including the Cirebon Regency Regent’s Office, the Manpower office, and labor organizations, participated in the meeting.
Severance and Future Investment
Workers who did not contest the layoffs received severance pay, compensation for unused leave, holiday bonuses, and wages for March 2025 on March 17, 2025. Workers disputing the layoffs will have their cases resolved through industrial relations dispute mechanisms, with payments made after a legally binding decision is reached.
Authorities are monitoring the payment of worker entitlements.The Cirebon Regency Government has urged the company to continue investing and operating in the region, with a priority on rehiring former employees. The government also plans to encourage companies to reinstate withdrawn orders.
According to the company’s legal counsel, PT Yihong Novatex Indonesia intends to regain the trust of employers and is committed to prioritizing the rehiring of laid-off workers onc the layoff issue is resolved.
Indonesian Textile Factory Lays Off Over 1,100 Workers: Yoru Questions Answered
Q: What happened at the PT Yihong Novatex Indonesia textile factory?
A: Over 1,100 workers at PT Yihong Novatex Indonesia, a textile and footwear manufacturer located in Cirebon Regency, Indonesia, were laid off in early March 2025.
Q: How many workers were affected by the layoffs?
A: According to reports, all 1,126 workers were impacted.
Q: Why were the workers laid off?
A: The layoffs were attributed to a decline in orders. This decline stemmed from disruptions caused by worker strikes.
Q: When did the layoffs take effect?
A: The layoffs reportedly took effect on March 10, 2025.
Q: What were the strikes that led to the layoffs?
A: Strikes occurred from January 30 to February 1, 2025, and on March 1, 3, and 4, 2025.
Q: What actions did the company take following the strikes?
A: Following the strikes, the company canceled orders and removed machinery and raw materials.
Q: What is the government’s response to the layoffs?
A: The Cirebon Regency Government facilitated discussions regarding the industrial relations dispute on March 12, 2025. Minister of Manpower Yassierli is awaiting an official report from the Cirebon Regency Manpower Office to verify the details. The government is also urging the company to continue investing and operating in the region.
Q: What is the status of the laid-off workers?
A: Workers who did not contest the layoffs received severance pay, compensation for unused leave, holiday bonuses, and wages for March 2025 on March 17, 2025. Workers disputing the layoffs will have their cases resolved through industrial relations dispute mechanisms.
Q: What measures are being taken regarding the worker entitlements?
A: Authorities are monitoring the payment of worker entitlements.
Q: Is the company planning to continue operations in the region?
A: Yes, the Cirebon Regency Government has urged the company to continue investing and operating in the region, with a priority on rehiring former employees.
Q: Does the company plan to rehire the laid-off workers?
A: According to the company’s legal counsel, PT Yihong Novatex indonesia intends to regain the trust of employers and is committed to prioritizing the rehiring of laid-off workers once the layoff issue is resolved.
Q: What is the government doing to address the situation?
A: The government plans to encourage companies to reinstate withdrawn orders.