"Sluggish Market Affected by 'Trump Tariffs', Thousands of Garment Factory Employees in Grobogan Regency Laid Off", 16 September 2025

Trump's tariffs have had a major impact on garment companies in Grobogan County, thousands of employees have had to accept the harsh reality.

Sluggish export market demand and pressure from Trump tariffs have made a number of garment factories in Grobogan take strict austerity measures.

This condition hit thousands of employees, especially contract workers whose work is no longer extended by the garment company.

The Grobogan Manpower and Transmigration Office (Disnakertrans) recently received an official report regarding thousands of company employees who were laid off.

PT Sai Apparel Industries...reported that many of its employees were affected by Trump's tariff policy.

"We received a verbal report from PT Sai Apparel Industries that the company was affected by this Trump Tariff policy. There is no mass termination of employment, but choosing to lay off," said the Head of the Manpower and Transmigration Office, Teguh Harjokusumo, Tuesday, September 16, 2025.

According to Teguh, the garment company chose not to extend the expired workers' contracts as an efficiency measure.

"Thus, it is not a layoff as circulating, but PT Sai Apparel Industries explained that the employment contract that ended was in accordance with the extension and was not renewed again," he explained...

"The permanent employees are partially laid off, with active status and get 50 percent wage rights," said Teguh.

Changing work patterns apply to permanent employees. Those who are employees are still scheduled to work for two weeks and then be laid off for two weeks, until waiting for the order situation or order to return to normal.

This policy has been running since early September 2025...

The number of employees of PT Sai Apparel Industries, which was originally 5,200 people, now only has 2,500 active workers...