16 hours ago
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February 21, 2025 | 10:47 pm
TEMPO.CO, Jakarta - The decision of PT Sanken Indonesia to close its factory in Cikarang, West Java, by mid-2025 has come as a blow to the 459 employees who have worked there for decades. The factory's closure is due to the parent company Sanken's intention to shift to a semiconductor producer in Japan. As a result, hundreds of workers are at risk of layoffs.
The Chairperson of the Federation of Indonesian Metal Workers Union (FSPMI) PT Sanken Indonesia, Dedy Supriyanto, objected to the company's decision.
"This is not due to bankruptcy, but this is purely because of a request from the parent company. We do not want layoffs," said Dedy to Tempo on Friday, February 21, 2025.
Dedy claimed that he was aware of the Sanken factory's closure plan since February 2024. However, it wasn't until last October that he, representing the 459 workers, began negotiations regarding compensation and severance pay related to the impending layoffs.
Dedy explained that the workers are now requesting compensation equivalent to 60 times their monthly wages.
He argued that the workers are entitled to this compensation due to their decades of service, especially since the company is not facing bankruptcy.
"We do not want this company to be closed, so we demand compensation," he said.
According to Dedy, the sales of Sanken products have declined in the export market, failing to meet the expectations of the parent company in Japan. Therefore, Dedy acknowledged that the closure is a decision that he cannot oppose.
"Talking about objections, in principle, we from workers' union definitely want to keep working," he said. However, the company is confirmed to cease production in June 2025.
Therefore, he understands that layoffs are a consequence of the factory's closure. Currently, Dedy's negotiation process for compensation has not reached a common ground with the company.
"We ask for it to be resolved by February 28, 2025. So, we as workers can perform the [Ramadan] fasting peacefully," he hoped.
Prior to this, the Ministry of Industry confirmed that the Sanken factory located in the MM2100 industrial area in Cikarang, West Java, will close.
Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) at the Ministry of Industry, Setia Darta, revealed that the electric equipment industrial plant plans to stop its production in the middle of 2025.
"This is because of a request from the parent company in Japan to close the production line in Indonesia, which will be moved to Japan to become a semiconductor in Japan," said Setia regarding the reason for the closure of the Sanken factory when met in Jakarta on Wednesday, February 19, 2025, as cited by Antara.
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