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View all search resultsSouth Korean garment maker to shut local factory after years of losses
The company is expected to continue operating its other business unit in Semarang, Central Java.
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Workers are pictured at a textile factory in Bandung, West Java, on Oct. 29, 2025. (Antara/Raisan Al Farisi)
S
outh Korean-owned garment maker PT Samwon Busana Indonesia will permanently shut its factory in Jepara, Central Java, on Aug. 1, affecting around 680 workers, as it has been grappling with losses since the coronavirus pandemic.
The company is expected to continue operating another business unit in Semarang, Central Java.
“We would like to clarify that PT Samwon Busana Indonesia is not leaving Indonesia or shutting down entirely, but is restructuring operations at its Jepara unit,” Industry Ministry spokesman Febri Hendri Antoni Arif said in a statement on Tuesday.
The ministry said it would summon the company’s management to clarify the reasons behind the Jepara unit’s losses, the fulfillment of workers’ rights and plans to transfer orders and machinery to the Semarang facility.
Read also: Layoffs rise to 32,389 in first half amid manufacturing slowdown
The ministry will coordinate with the Manpower Ministry to oversee the resolution of industrial relations issues and ensure severance payments and other worker entitlements are handled fairly and transparently in line with Indonesian law, he said.
At the same time, it will also work with the Industry Ministry's Industrial Human Resources Agency (BPSDMI), the Indonesian Textile Association (API), the Indonesian Employers Association (Apindo) and other garment companies in Central Java to identify opportunities for laid-off workers.
