ASIATODAY.ID, JAKARTA — A wave of crisis has hit Indonesia’s tire industry following plans for mass layoffs at PT Multistrada Arah Sarana Tbk (Michelin Indonesia) in Cikarang, West Java. Hundreds of workers are at risk of losing their jobs, triggering large-scale protests and prompting the House of Representatives and the Ministry of Industry to take immediate action.
The Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arief, confirmed that the government has summoned the company’s management to clarify reports of mass layoffs.
“We have requested clarification from the company regarding the layoff issue. We emphasized that any workforce adjustments must comply with legal regulations and ensure workers’ rights are fully protected,” Febri stated in Jakarta quoted on Friday, November 7, 2025.
According to the company’s explanation, the decision was driven by a sharp decline in global demand, which has led to reduced production volumes and forced efficiency measures.
As a bonded-zone manufacturer, Michelin Indonesia exports most of its tire products to the United States and other international markets.
Ministry of Industry emphasized that any downsizing process must follow proper labor mechanisms.
“We strongly encourage a tripartite dialogue between the government, the company, and labor unions so that every decision is made fairly, transparently, and in the best interest of workers,” Febri said.
The ministry is also preparing reskilling and upskilling programs through its Industrial Training Centers (BDI) to support affected workers.
Ministry of Industry has been coordinating with regional governments, labor unions, and the Ministry of Manpower to ensure that all procedures comply with regulations and that the situation remains stable.
Meanwhile, the House of Representatives has intervened to prevent the layoffs. Members of Commission VI and Commission IX have urged Michelin Indonesia to suspend its layoff plans while mediation efforts are underway. Thousands of workers staged protests in the Cikarang industrial area in early November, demanding job security and transparency from management.
Ministry of Industry reaffirmed that the tire manufacturing sector plays a strategic role in Indonesia’s automotive and manufacturing ecosystem. The government remains committed to maintaining a healthy investment climate and preventing the crisis from spreading to other tire factories across the country.
“We understand the global market pressures affecting several industrial segments, including tire manufacturing. However, the government is committed to fostering a stable business environment, promoting efficiency and innovation, and ensuring long-term industrial sustainability,” Febri emphasized.
Ministry of Industry concluded by urging all parties to remain calm and avoid speculation.
“We will continue to monitor the situation and ensure the entire process remains transparent. Please refrain from speculation until the verification process is completed,” Febri said. (AT Network)
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