Two Central Java Garment Factories Collapse, Over 1,400 Workers Laid Off

Two garment factories in Indonesia's Central Java province have shut down, leading to the dismissal of more than 1,400 workers. The closures of PT Victory Apparel Semarang and PT Samwon Busana Indonesia Jepara have raised concerns about the region's industrial health.

Anne Patricia Sutanto, Chairwoman of the Indonesian Garment and Textile Association (AGTI), expressed that she was unaware of the specific reasons behind these bankruptcies, noting that neither company was a member of AGTI. She indicated that various factors can lead to a garment company's failure, such as the bankruptcy of their buyers, which prevents payment.

Despite the closures, Sutanto highlighted that Central Java's minimum wages remain competitive compared to other regions like West Java. She pointed out that AGTI members in Central Java focused on exports have actually experienced sales growth. "If it's garment itself, especially in Central Java, it should not go down, but up, as long as it supplies global brands," Sutanto stated.

Overall, the Indonesian garment industry saw a positive first quarter in 2026, with stable sales in the second quarter. However, rising raw material costs due to global conflicts have impacted pricing, making it difficult for the market to absorb increases. Many AGTI members, particularly SMEs, reported difficulties in the second quarter after a strong performance during the Eid al-Fitr period in the first quarter.

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If it's garment itself, especially in Central Java, it should not go down, but up, as long as it supplies global brands.