Jakarta (ANTARA) - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government would first monitor and gather more information regarding the reported mass layoffs at cigarette company PT Gudang Garam.
Speaking to the press at his office in Jakarta on Monday, the minister did not detail any possible government action, noting only that the matter would be examined while citing Gudang Garam’s ongoing modernization efforts.
"We will look into this issue," Hartarto said.
He further said that he had yet to receive an official report or statement from the cigarette producer about the layoffs, which reportedly occurred at a factory in Tuban District, East Java Province.
The issue drew public attention after a video circulated widely on social media, showing tens of Gudang Garam workers in an emotional gathering believed to be a farewell event. The employees in the footage were seen wearing shirts bearing the company’s logo.
At a press conference in Jakarta on Saturday (September 6), President of the Labor Party and the Indonesian Trade Unions Confederation (KSPI) Said Iqbal conveyed similar statements, saying his side would first verify the report.
“We just received information about a mass layoff at PT Gudang Garam. We will first ascertain its veracity,” he said.
Iqbal noted that if confirmed, the layoffs would signal weakening consumer purchasing power, which in turn undermines the productivity of the national cigarette industry.
He further attributed the unfavorable conditions to limited tobacco supplies, the lack of innovation to meet market trends, and rising excise taxes.
In addition, he warned that factory layoffs could trigger broader repercussions, indirectly affecting thousands of workers and small businesses engaged in the tobacco and cigarette supply chains.
