Jakarta, Indonesia Sentinel — Indonesia has been hit by a wave of mass layoffs in early 2025, with several major companies shutting down operations. Since January, nearly 13,000 workers have been affected by job cuts across various industries.
Several large companies in Indonesia are struggling with challenges that have led to widespread layoffs, adding to the growing list of businesses impacted since the beginning of the year.
Labor-intensive industries have been hit the hardest, leading to thousands of workers losing their jobs. The latest major closure was textile giant Sritex, which declared bankruptcy and laid off nearly 11,000 employees.
The layoffs have not been limited to the textile sector. The electronics industry has also been affected, with two Yamaha musical instrument factories and the Sanken electrical component plant among the latest casualties.
List of Major Layoffs in Indonesia Since Early 2025
Yamaha
One of the companies affected by the layoffs is Yamaha Music Indonesia. According to Indah Anggoro Putri, Director General of Industrial Relations and Social Security at the Ministry of Manpower, Yamaha Music Indonesia will lay off more than 1,000 employees.
According to Bisnis, the company, which focuses on piano production for export, has already terminated 400 employees at its factory in Cibitung, Bekasi since march 2025. While 700 employees in Jakarta has been laid off between late December 2024 and early January 2025.
In total, Yamaha has laid off 1,100 workers in early 2025. The Company cited production relocation plans to Japan and China as the main reason for the layoffs.
Sanken
Japanese electronics company Sanken, which operates in the MM2100 industrial area in Cikarang, has announced plans to halt production in June 2025.
The decision stems from the parent company’s strategic shift in Japan, which involves transitioning from household appliances to the semiconductor sector.
As a result, 900 employees will lose their jobs. Data from the Indonesian Trade Union Confederation (KSPI) indicates that 500 employees have already been laid off, while the remaining 400 will continue working until June 2025 before facing termination.
Sritex
The largest layoffs of the year have come from the bankruptcy of Indonesian textile giant PT Sri Rejeki Isman Tbk, known as Sritex. After being declared bankrupt by court-appointed admnistrators, Sritex ceased operations on March 1, 2025, leading to the termination of nearly 11,000 workers.
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The bankruptcy of Indonesian textile giant Sritex Group has led to mass layoffs across its subsidiaries. According to information from the administrators, a total of 10,669 employees across the Sritex Group lose their jobs in 2025. This figure includes workers from Sritex’s subsidiaries, such as PT Bitratex Semarang, PT Primayudha Boyolali, PT Sinar Pantja Djaja Semarang, and PT Sritex Sukoharjo.
The collapse of Sritex marks a significant downturn for Indonesia’s textile industry, raising concerns about the broader economic impact and the future of thousands of displaced workers.
Mass Layoffs Trend In Indonesia
The negative trend has actually been ongoing for the past few years. According to data from the Ministry of Manpower (Kemnaker), between January and December 2024, a total of 77,965 workers were laid off. This figure marks an increase compared to 2023, when 64,855 employees lost their jobs.
The wave of mass layoffs underscores the ongoing economic challenges facing Indonesia in 2025, with many industries struggling to adapt to shifting market conditions and global economic pressures.
(Raidi/Agung)
