Alfitria Nefi P, Jakarta – The Congress of the Indonesian Trade Union Alliance (KASBI) reported that PT Victory Chingluh Indonesia, a Nike shoe manufacturer based in Tangerang, Banten, has laid off 1,800 of its 2,400 workers.
"The number of workers who have already been terminated is around 1,800, while about 600 others are still undergoing the process," said KASBI Secretary General Andi Kristiantono on Thursday, October 30, 2025.
According to Andi, the company attributed the mass layoffs to declining orders, allegedly caused by product quality issues. He added that the management claimed it could no longer sustain the employment of around 15,000 workers due to reduced demand.
KASBI, however, rejected the company's decision, saying that workers were being made victims of management failures in handling production. "The current problem is not purely the workers' fault, but a result of the company's mismanagement," Andi said.
He pointed out that KASBI's 2024 investigation showed the company had actually recorded a sharp rise in profits and an increase in production at its sister company, PT Chingluh Cikupa. "This shows the layoffs are not the only solution," he added.
Andi criticized the decision as a "quick fix" that would worsen unemployment, deepen inequality, and push affected workers' families into economic hardship.
KASBI has also met with the Tangerang District Manpower Office, the local Monitoring Agency, and the Tangerang District Legislative Council (DPRD) to discuss the layoffs.
These government bodies, Andi said, had visited the factory, but he regretted that they could not prevent the terminations.
KASBI Chair Sunarno said the union had entered into talks with the company and insisted that if layoffs were unavoidable, they must apply only to employees who agreed and must be compensated in full accordance with labor laws.
"KASBI will continue to assist the terminated workers to ensure they receive their rights," Sunarno said. "If violations occur, we are ready to pursue legal action, both through litigation and non-litigation means."
Tempo has reached out to Dinar from Ching Luh Group Indonesia's Strategy and Communication Department for confirmation, but as of publication time, there has been no response.
Deputy Minister of Manpower Afriansyah Noor said the ministry is still gathering information on the reported layoffs at PT Victory Chingluh Indonesia.