Sixty thousand laid-off workers to miss out on holiday bonuses

  • Published on 17/03/2025 GMT+7

  • Reading time 3 minutes

  • Author: Gusty Da Costa

  • Editor: Imanuddin Razak

Some 60,000 workers from 50 companies that have been laid off due to company bankruptcies, efficiency policies, workforce reductions, and factory relocations to other countries will likely have to miss out their bonuses two weeks before Idul Fitri, the Indonesian Trade Unions Confederation (KSPI) has revealed.

 

Data collected from KSPI regional offices across Java indicates that 37 companies have carried out layoffs without clear provisions for severance pay or holiday bonuses (THR). Reports from Sritex workers who have filed complaints at the KSPI stipulate that tens of thousands of Sritex employees are certain not to receive their THR. 

 

KSPI President Said Iqbal criticized the government’s unfulfilled promises, particularly those of the Minister of Manpower, who previously assured that THR payments would be made on time.

 

A table listing the 37 companies that conducted layoffs between January and February 2025 shows that 44,069 workers have not received severance pay or THR. Additionally, data from 13 more companies, accounting for around 16,000 more laid-off workers, is still being verified by KSPI in regions including West Java, Central Java, Banten, East Java, Riau Islands, and North Sumatra. The affected industries include palm oil, textiles, footwear, electronics, services, retail (such as KFC), and the automotive sector, particularly truck and dump truck manufacturing.

 

KSPI has questioned the government’s response, particularly the Minister of Manpower, regarding the fate of these 60,000 laid-off workers who are unlikely to receive their THR before Idul Fitri. 

 

“What is the Minister of Manpower even for?” Iqbal, who is also President of Labor Party, said as quoted in a statement on Sunday, March 16, 2025.

 

To address this crisis, KSPI and the Labor Party urge the Minister of Manpower to establish a special task force (Satgas PHK) to comprehensively handle and resolve these mass layoffs. They insist that the government should not focus solely on Sritex but should also address similar cases across multiple industries.

 

“The government cannot remain silent. We demand that the Minister of Manpower establish a task force to oversee and resolve this issue. Do not just focus on Sritex; all layoffs must be handled thoroughly,” Iqbal said.

 

“The Minister of Manpower is not just the minister for Sritex workers,” he added.

 

Meanwhile, Lukman Hakim, Coordinator of the KSPI-Labor Party’s Workers’ Complaint Post, revealed that several former Sritex workers who reported their cases to the post had been intimidated and threatened to be abducted. Due to this fear, many workers are hesitant to return to the post or sign power of attorney documents for legal advocacy.

 

Iqbal has instructed the complaint post to further investigate these allegations. He also askd all parties to refrain from intimidating workers fighting for their rights, emphasizing that if these threats are confirmed, they represent a severe issue that must be addressed immediately. He called on the government to take swift action to ensure that the Sritex case does not drag on.

 

Furthermore, Iqbal stressed the need to address the risk that thousands of laid-off workers will not receive their THR. He highlighted that Indonesia’s labor law explicitly mandates that as long as a labor dispute is ongoing, companies must continue to pay wages and worker entitlements, including THR.

 

“Therefore, we demand that the Ministry of Manpower take immediate action to ensure that all companies involved meet their obligations regarding THR payments to laid-off workers. THR must be paid no later than seven days before Idul Fitri,” he asserted.

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