JakartaGlobe-Mar 5
The year 2025 has brought significant challenges to Indonesia’s industrial sector, with several major companies shutting down operations and carrying out mass layoffs. Worsening financial difficulties, declining market demand, and strategic decisions by parent companies have forced many factories to cease production, affecting not only workers but also the local economy and the broader manufacturing industry. Among the most notable closures is Sri Rejeki Isman (Sritex), which officially halted operations on March 1 following bankruptcy proceedings. Over 10,000 employees were dismissed due to insufficient working capital, rising production costs, and asset-related risks. Obligations to creditors will be settled through asset auctions, while employees were formally let go by the end of February. Sanken Indonesia, a manufacturer of switched-mode power supply units and transformers in Cikarang, is set to shut down in June. This closure, affecting 459 workers, was driven by its parent company’s inability to compete with new products in the market. Negotiations regarding severance pay are still ongoing between the company and labor unions. Yamaha Music is also closing two piano production facilities in Indonesia. The Yamaha Music Product Asia factory in Bekasi, employing 400 workers, will shut down in March, followed by Yamaha Indonesia in Pulo Gadung, Jakarta, where 700 workers will be laid off by December. The decline in global demand has led the company to shift production to factories in China and Japan. Industry Minister Agus Gumiwang Kartasasmita has stated that further analysis is needed to determine whether competition, mismanagement, or other factors contributed to these closures. The wave of factory closures and mass layoffs in 2025 highlights the growing difficulties faced by Indonesia’s manufacturing industry. Factors such as global competition, shifting market trends, and financial constraints have led many companies to struggle for survival, reshaping the landscape of the country’s industrial sector. Read more at: https://jakartaglobe.id/business/factories-struggle-as-indonesia-faces-industrial-challenges-in-2025
