Eka Jaya Saputra, Bekasi, W – Java. Michelin-owned tire maker Multistrada Arah Sarana has laid off around 370 workers at its Bekasi plant, just a day after the Indonesia Stock Exchange (IDX) delisted the company and amid mounting pressure from new US import tariffs on Indonesian tires.
Guntoro, chairman of the workers' union at Multistrada, said the layoffs affected about 200 production workers and 170 logistics staff. Management cited efficiency measures and restructuring plans, including outsourcing some logistics operations to third parties by April 2026.
"This isn't the first time layoffs have happened, but in the past, they were voluntary and transparent. This time it feels targeted, even some union members were affected. It looks like a case of union busting," Guntoro told reporters on Friday.
The union has strongly rejected the decision and plans to pursue legal and formal actions. "We will report this case to the Bekasi Manpower Office and the Ministry of Manpower and coordinate with the regional legislature and local government. If there's no resolution, large-scale protests could follow," he warned.
Fuad Hasan, head of industrial relations at the Bekasi Manpower Office, confirmed the company's reasoning, citing global economic pressures and trade tariff policies imposed by US President Donald Trump as contributing factors. Indonesia's tire exports to the United States are now subject to a 19 percent import tariff under a US trade policy that took effect in August, up from about 4 percent previously.
"The company said its export market has been hit by trade tariffs. However, we've reminded them that any layoffs must follow procedures outlined in the collective labor agreement," Fuad said.
So far, 240 employees have received official termination notices, though negotiations are ongoing between management and the union. "The process isn't final. Workers have the right to reject and request renegotiation. A follow-up meeting is scheduled for next week," he added.
Fuad also said that all companies must coordinate with labor unions and notify the local manpower office before finalizing any layoffs. He warned that continued global economic strain could trigger further job cuts across Indonesia's manufacturing sector.
"So far, only Multistrada has reported mass layoffs. But if global pressures persist, similar cases could occur in other factories," Fuad said.
The layoffs come shortly after the IDX officially delisted Multistrada from the stock market on Thursday. Trading in Multistrada shares has been suspended since July 26, 2024, following the company's announcement of its delisting plan. The stock last traded at Rp 6,200 per share.
Multistrada, a member of the Michelin Group, operates in the highly competitive global tire business. The company said its transition to private ownership is part of Michelin's strategy to achieve greater operational integration across its global network, enabling shared resources, improved efficiency, and stronger economies of scale.
"The change is expected to enhance the company's agility in responding to market dynamics in the global tire industry. Becoming a private company provides the flexibility needed to achieve this integration and respond quickly to changes in the global tire market," Multistrada's management said in December.