Indonesian Govt Probes Alleged Mass Layoffs at Mie Sedaap Factory

4 days ago 18

February 25, 2026 | 12:59 pm

TEMPO.CO, Jakarta - Indonesia's Manpower Minister Yassierli is still looking into the alleged mass layoffs of workers at the Mie Sedaap manufacturer, PT Karunia Alam Segar (KAS) in Gresik, East Java. "We are still monitoring the situation concerning the Mie Sedaap layoffs. We will provide an update to everyone later," said Minister Yassierli, as quoted by Antara on Wednesday, February 25, 2026.

Earlier, reports of 400 workers at the manufacturing facility of Mie Sedaap being laid off a few days before Ramadan circulated on social media. In a post, it was shown that the workers were notified of their termination via WhatsApp messaging, despite their contracts still being in effect.

The Deputy Speaker of the House, Sufmi Dasco Ahmad, stated on Monday, February 23, 2026, that he had received the aspirations of the PT Karunia Alam Segar workers. He conveyed that the company has agreed and promised not to carry out further layoffs. "We have coordinated and I believe the employees can return to work with peace of mind," Dasco said.

He emphasized that the company's layoff policy should not have occurred, especially during the Ramadan period and approaching Eid al-Fitr.

Meanwhile, the Indonesian Trade Union Confederation (KSPI) considers the mass layoff case at the Mie Sedaap factory to be far from an isolated incident. It is the mere tip of the iceberg of a serious problem linked to Eid holiday bonus payments. 

KSPI President Said Iqbal stated that putting workers on "unpaid leave" is a new method to avoid the obligation of paying the Eid holiday bonus. "The company indeed did not carry out layoffs. That's true. But the workers were put on leave, not paid their salaries before Eid, and the Eid holiday bonus was not paid," said Said Iqbal.

Read: Statistics Indonesia: Unemployment Drops to 7.35 Million by November 2025

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