Workforce reductions at Indonesia’s Mie Sedaap draw DPR and union pressure; 400 workers reinstated

A controversial workforce reduction at the Mie Sedaap factory in Gresik has been reversed, with 400 employees set to return to their posts following public backlash and parliamentary intervention.

PT Karunia Alam Segar, a subsidiary of Wings Group and producer of Mie Sedaap, initially cut working hours for around 400 employees at its Gresik plant ahead of Lebaran (Eid al-Fitr) 2026. Over the past month, affected workers were reportedly scheduled to work only two to three days per week, with frequent shift changes.

Management said the adjustments were driven by production capacity and market demand rather than religious or seasonal factors. Peter Sindaru, Human Resources and General Affairs representative, said, “As a labour-intensive manufacturing company, staffing levels fluctuate based on operational needs. Adjustments to production capacity are routine industry practice and comply with labour regulations.”

The move, however, sparked criticism from labour groups and the public, particularly because it occurred just before Ramadan and the Eid al-Fitr holiday season, when employees are entitled to Tunjangan Hari Raya (THR) (holiday bonus) payments.

DPR steps in..

The issue drew attention from the House of Representatives (DPR). Deputy Speaker Sufmi Dasco Ahmad confirmed that DPR had coordinated with management and secured a commitment to halt layoffs. 

“Job terminations during Ramadan and before Id-ul-fitri risk creating social unrest,” Dasco said. “The company agreed to stop further layoffs and ensure workers could observe the fasting month with peace of mind.”

Ministry and Union review

The Manpower Ministry, led by Minister Yassierli, monitored the situation closely. While the ministry did not confirm formal layoffs, it coordinated with the company and unions to ensure compliance with labour laws. 

The East Java Regional Board of the Federation of Indonesian Metal Workers Union confirmed that the matter had been resolved. Union representative Agus Supriyanto said Wings Group acknowledged procedural missteps in its initial decision-making.

400 workers reinstated with festival allowance

Following an internal evaluation, management decided to reinstate all 400 affected employees. On 24 February 2026, in the presence of the East Java Manpower Office, it was confirmed that workers would return to their positions. 

Agus noted that the employees would also receive their full THR payments (festival allowance), addressing one of the main concerns ahead of Lebaran.

Company statement

Despite the reversal, management emphasized that workforce adjustments were driven solely by market dynamics, operational planning, and production forecasts, not by seasonal or religious considerations. 

Peter Sindaru added, “Decisions are based on operational needs and production planning, which can change over time. These practices are standard across the manufacturing sector and comply with prevailing labour regulations.”

Mie Sedaap is Indonesia’s second-largest instant noodle brand, holding 14.5% of the national market behind Indomie’s 71.6%, according to the 2026 Top Brand Index. 

The incident highlights the sensitivity of labour decisions during major religious periods and underscores the role of public scrutiny, parliamentary oversight, and union engagement in safeguarding worker rights.