JAKARTA - The Ministry of Industry (Kemenperin) has clarified information circulating regarding the closure of PT Samwon Busana Indonesia in Jepara Regency, Central Java.
The government emphasized that the company did not close all its operations in Indonesia, but only restructured the Jepara Unit, which affected around 670 workers.
On the other hand, the factory in Semarang continues to operate and even increases its production capacity.
The clarification was made by the Ministry of Industry after news emerged that PT Samwon Busana Indonesia would stop all of its business activities in Indonesia.
Ministry of Industry spokesman Febri Hendri Antoni Arif explained, based on the initial investigation results, the Ministry of Industry stated that the planned cessation of operations which will take effect from August 1, 2026 only covers the Jepara Unit which employs around 670 people.
Meanwhile, the Semarang Unit is still operating normally.
In fact, the plant only increased its electrical capacity by 56 percent, from 555,000 volts ampere (VA) to 865,000 VA on July 16, 2026.
"The addition of capacity on July 16, 2026 to support the increase in production capacity and export activities," said Febri in a written statement, Tuesday, July 21.
Febri added that the government was moving quickly through the Directorate General of Chemical, Pharmaceutical and Textile Industries (IKFT) to ensure that the issue was handled on a measured basis.
"We clarify that the business entity PT Samwon Busana Indonesia does not leave Indonesia or close down completely, but is restructuring its operations at the Jepara Unit. However, the fate of around 670 workers affected in Jepara remains our priority," he said.
He said the Ministry of Industry had summoned the management of PT Samwon to sit down together, asking for clarification of the data and executing comprehensive mitigation measures to minimize social and economic impacts.
To anticipate the impact of the restructuring, the Ministry of Industry has prepared a number of short- and medium-term mitigation steps.
The first step is to call the management of PT Samwon Busana Indonesia to obtain official explanations regarding the causes of the loss of the Jepara Unit, ensuring the fulfillment of workers' rights and evaluating the possibility of transferring orders and production machines to the Semarang Unit.
Then, the Ministry of Industry coordinates with the Ministry of Manpower (Kemenaker) and the labor service in the region to ensure that all workers' rights, including severance pay and other normative rights, are met in accordance with legal provisions.
In addition, the government has also mapped the opportunities for the reabsorption of affected workers.
This effort was carried out together with the Industrial Human Resources Development Agency (BPSDMI) of the Ministry of Industry, the Indonesian Textile Association (API), the Indonesian Entrepreneurs Association (Apindo) as well as a number of garment companies in Central Java that have the potential to absorb experienced workers.
In addition to focusing on worker protection, the Ministry of Industry also seeks to maintain the sustainability of investment and exports of the national textile industry.
The government will communicate with the company's group headquarters in South Korea to ensure investment commitments in Indonesia remain maintained.
On the other hand, approaches are also made to the main buyers from the United States so that orders for garment products are still produced in Indonesia and not diverted to competing countries.
According to the Ministry of Industry, these steps are expected to provide certainty for workers affected by restructuring while maintaining investor confidence in the national textile and textile products (TPT) industry.
The government considers that quick and coordinated handling is important so that the restructuring that occurs in one of the business units does not create a wrong perception regarding the investment climate in Indonesia or disrupt the export performance of the garment sector, which has long been one of the pillars of the national manufacturing industry.
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