Prisma Ardianto, Jakarta – Approximately 4,000 workers at a footwear factory in West Java that supplies global brands Nike and Puma have been placed on leave as the company awaits new production orders, raising concerns about potential mass layoffs.
Said Iqbal, labor and workers' welfare adviser to President Prabowo Subianto, said the affected employees work for Feng Tay Indonesia Enterprises in Bandung Regency, West Java.
If the situation persists, the workers could face permanent job losses, he warned.
"In Bandung Regency, there is a potential layoff risk affecting 4,000 employees," Iqbal said in a statement on Sunday. "Based on preliminary findings, the number represents a significant portion of the company's workforce of around 14,000 to 17,000 employees."
According to Iqbal, the workers were sent home after completing production orders for Nike and have yet to receive clarity on future orders.
"Initial findings indicate that Feng Tay has completed its Nike orders and is waiting for the next batch of orders," he said. "Because there is still no certainty, the 4,000 employees who finished producing Nike shoes have been sent home."
He added that the company is also facing challenges related to the supply of raw materials needed for production.
Previously, some materials were supplied directly through Nike, but sourcing arrangements have since shifted to third-party suppliers. According to Iqbal, disruptions linked to conflict in the Middle East have complicated distribution and added pressure to operations.
"If workers have already been sent home, the risk of large-scale layoffs becomes significant, as seen in other cases," he said. "President Prabowo does not want mass layoffs. He wants people to have jobs."
Iqbal said he plans to visit Feng Tay on Monday along with officials from the Ministry of Manpower and representatives of labor unions to obtain a clearer picture of the company's situation and explore ways to prevent layoffs.
"The objective is to determine whether the government can help address the challenges facing the company," he said.
According to the company's website, Feng Tay Indonesia Enterprises is part of Taiwan-based Feng Tay Group and has operated in Indonesia since 1992. The company employs about 16,000 workers and operates production facilities on a 32-hectare site in Bandung.