Dismissals at PT Victory Apparel, Indonesia - 2026

PT Victory Apparel, a garment manufacturer based in Semarang, Central Java, has announced a phased layoff of approximately 802 employees, beginning at the end of July 2026. The company states that ongoing financial losses have forced it to cease operations and reduce its workforce.

However, labor unions have questioned the company's claims of financial difficulties. According to Mulyono, head of the Central Java chapter of the Indonesian Workers' Alliance Congress (KASBI), workers continued to fulfill export orders during the past two years, raising doubts about the extent of the reported losses.

Affected employees are still awaiting certainty regarding their severance pay and other employment-related benefits. Negotiations between the company and workers are currently taking place through a bilateral process. If no agreement is reached, labor unions have indicated that they may take the dispute to Indonesia’s Industrial Relations Court (PHI).

The Central Java Labor Office is monitoring the case and has emphasized that, even if a company shuts down due to losses, it remains legally obligated to fulfill workers' rights, including severance payments and other statutory benefits.
PT Victory Apparel is listed in the Open Supply Hub as a supplier to New Balance and is named in New Balance’s supplier list 2025 as a Tier 1 – supplier.

Basic Information

Case ID: 2026.015

Identification Number from Open Supply Hub (OS-ID): ID2019085B3WTR2

Open Supply Hub Link

Affected Country: Indonesia

Date of occurrence: 2026-07-23

Social Sector Risks concerned:

• Dismissals / factory closures

Supplier Details

Production Site

PT Victory Apparel
Kawasan Berikat Tepz, Jl Coaster 8 Blok B01-06A, Tanjungmas Semarang Utara, Semarang, Jawa Tengah Semarang - Indonesia

Total number of workers/employees:
821

Number of female workers: 86%

Workers movement

There are unions active.

Name(s) of union(s) :
KASBI (Kongres Aliansi Serikat Buruh Indonesia, dt.: Kongress der Allianz indonesischer Gewerkschaften)

Source of information about unions:
https://afu.id/ekonomi/dua-pabrik-garmen-di-jateng-berhenti-operasi-1472-buruh-terancam-phk

No information about workers commitee available.

Business Relations

Known Buyer/Brands:

• New Balance

Source of information buyers: https://opensupplyhub.org/production-locations/ID2019085B3WTR2
2. Source of information buyers: https://www.newbalance.com/on/demandware.static/-/Library-Sites-NBUS-NBCA/default/dw7a4db26f/pdf/NB_Tier_1_Supplier_List_September%202025.xlsx

Known business relationship to factory:

Tier 1

Follow up

Sources

Name of reporting organisation: AFU.id

AFU.ID is an Indonesian news website focused on business, labor, and current affairs.

Contributor: SÜDWIND