Mass Layoffs Threaten Tangerang, APINDO Urges Government to Prevent Factory Shutdown
Friday, 31 October 2025
Tangerang – The Indonesian Employers Association (APINDO) of Tangerang Regency has urged the local government to take immediate action to prevent the complete closure of PT Victory Chingluh Indonesia, a major shoe manufacturer currently conducting mass layoffs.
The move, APINDO said, is crucial to avoid a sharp rise in unemployment across the Tangerang region in Banten Province.
Chairman of APINDO Tangerang, Herry Rumawatine, stated that his organization has coordinated with the Governor of Banten, the Mayor of Tangerang, and the Regent of Tangerang to seek a solution that would keep the Nike shoe-producing factory from fully relocating its operations to Pekalongan, Central Java.
“APINDO has been in close communication with the local government. They are aware of the issue and are now working together to find a way to ensure the factory remains operational here,” Herry said on Friday (October 31, 2025).
He explained that one of the main reasons behind the company’s decision to relocate is the high regional minimum wage in Tangerang, compounded by unclear additional costs and regulatory fees.
“There are permits and other charges whose regulations are not clearly defined, which add to the company’s burden. On top of that, there’s social pressure to recruit local workers who often don’t meet industrial qualifications,” he noted.
According to Herry, these factors have driven many companies to consider shifting parts of their production to areas with lower operational costs.
APINDO has called on the local government to improve the business and investment climate in Tangerang to prevent further industrial outflows. “If there’s still room for a solution, we hope the factory won’t close entirely. It’s fine if they open in Central Java, as long as operations in Tangerang continue,” he emphasized.
In addition, APINDO plans to enhance training and capacity-building programs for local workers, particularly unemployed individuals of productive age, to ensure they possess the skills required by the industry.
“We’re ready to assist the government in reducing unemployment. The real issue now is not a shortage of workers, but a shortage of qualified ones,” Herry concluded.
Source: Beritasatu.com
