KOMPAS.com/Romensy Augustino

Wave Of Layoffs In Early 2025: Nine Companies Shut Down Factories

Wednesday, 12 Mar 2025

A wave of layoffs has impacted Indonesia's manufacturing sector at the beginning of 2025. Over 10,000 workers have been affected due to factory closures, production relocations, and a decline in market demand. Several major companies, including PT Sri Rejeki Isman Tbk (Sritex) Group, PT Sanken Indonesia, and Yamaha Indonesia, have reduced their workforce. Additionally, other companies are reported to be planning layoffs in the near future. The following is a list of nine companies that have either conducted or are likely to conduct layoffs, based on reports from Kompas.com, Kompas TV, and Kontan.co.id as of Monday, March 10, 2025: 

1. Sritex Group   

PT Sritex Group has laid off 10,669 employees after the textile company was declared bankrupt in October 2024. The Central Java Department of Manpower and Transmigration (Disnakertrans) noted that layoffs have been carried out in stages since January 2025, with details as follows:   

- 1,065 employees from PT Bitratex Semarang (January)   

- 8,504 employees from PT Sritex Sukoharjo (February)   

- 956 employees from PT Primayuda Boyolali (February)   

- 40 employees from PT Sinar Panja Jaya Semarang (February)   

- 104 employees from PT Bitratex Semarang (February)   

2. PT Sanken Indonesia   

Approximately 450 workers at PT Sanken Indonesia in Bekasi have been affected by layoffs due to the factory's closure. This Japanese company decided to cease production in June 2025. Currently, the factory is still operating at 10 percent capacity to meet domestic market demand. 

3. Yamaha Music   

Two factories of PT Yamaha Music Indonesia are set to close soon:   

- The factory in Cikarang will close in March 2025   

- The factory in Pulo Gadung will close in May or June 2025   

Around 1,100 employees are at risk of layoffs due to these closures, as Yamaha shifts production to China and Japan in response to decreased market demand. 

4. KFC Indonesia   

The fast-food chain KFC is reported to have laid off several employees at various outlets since the beginning of 2025. 

5. PT Tokai Kagu Indonesia   

This Bekasi-based furniture company has reportedly closed and has laid off more than 100 workers.


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