Thousands of Workers Laid off as Puma Garment Factory Closes

TEMPO.CO, Jakarta - A garment factory supplying the brand Puma, PT Tuntex Garment Indonesia, located in Cikupa, Tangerang, laid off 1,163 workers ahead of Eid al-Fitr as it is closing down the business due to facing bankruptcy.

“We have received the company’s report and the layoff process is ongoing,” said the Head of Tangerang Manpower Agency, Rudy Hartono, to Tempo on Wednesday, April 5.

According to him, the factory ceased operation because of sluggish demand from its two largest markets, the United States and European markets. “The order keeps plummeting for the past three years,” Rudi said.

The continued decline in sales is a domino effect of COVID-19 and the economic downturn in the US and Europe. “Since the onset of the COVID-19 pandemic in 2020, the order had slowed down and in the past three years, this condition got worse because the order kept falling,” Rudi explained.

He confirmed that one of the largest garment factories in Tangerang Regency stopped operating and closed down the business as of March 31. “It has been closed and it’s in the process of fulfilling the workers’ rights according to the prevailing regulations,” he added.

The Tangerang Manpower Agency ensured that the laid-off 1,163 workers will receive the Eid allowance or THR. “We ensure that all workers affected by the closure of this factory will get their rights according to the prevailing regulations, including THR,” Rudi emphasized.

JONIANSYAH

Editor's Choice: Jokowi Claims Basic Need Prices Drop Ahead of Eid al-Fitr

Click here to get the latest news updates from Tempo on Google News