WEST JAVA, Thekabarnews.com—The National Federation of Trade Unions (KSPN) said over 4,000 workers at a Nike footwear plant in Bandung, West Java, were temporarily laid off. This happened after the company stopped production because of interruptions in the supply of raw materials.

KSPN stated that the furlough began on Monday, June 15, 2026, when the firm delayed receiving essential production materials shipped from the United States.

Union leaders said the disruption happened during a changeover in material procurement to a third-party vendor. Furthermore, the delay impeded the plant’s ability to maintain normal manufacturing operations.

As a result, the firm was forced to halt its manufacturing lines. Management is working to stabilize the supply chain. Output is expected to be suspended until July.

The company has pledged to continue its efforts to preserve workers’ basic job rights, even during the temporary closure. Additionally, management will continue to pay compensation to employees according to the minimum wage standards in Indonesia. These wage standards apply throughout the period of furlough, KSPN said.

The move gives workers short-term financial certainty. However, labor organizations remain concerned about the wider repercussions for Indonesia’s industrial sector. This is especially true for sectors that are heavily reliant on imported raw materials.

The union officials urged the Indonesian government to impose stricter import rules and enhance industrial logistics. Moreover, they seek a reliable energy supply to assist labor-intensive businesses.

They warned that extended disruptions to the global supply chains could have an adverse impact on the production capacity of local enterprises. Furthermore, these disruptions could threaten the competitiveness of local businesses.

KSPN also warned that if the delays in the supply of raw materials are an indication of a general slowdown in global consumer demand, and international purchasers lower their production orders, the country’s export-led manufacturing industry could face more serious issues. In the coming months, these issues could become critical.

Those conditions might ultimately increase the possibility of widespread layoffs. This could happen if manufacturers obtain fewer export orders. As a result, union leaders said they may have to scale back operations beyond temporary furloughs.

Indonesia’s footwear sector is an important part of the country’s industrial economy. It provides employment for hundreds of thousands of individuals and makes a large contribution to exports.

The footwear business is highly subject to shifts in global demand and international supply chains. Worldwide brands such as Nike create footwear for international markets through manufacturing partners in Indonesia.

Supply chain disruption has been one of the main operational challenges for manufacturers recently. Increased transportation expenses, delays in the supply of imported goods, and changing demand in global markets have also created further pressures. These pressures affect labor-intensive sectors in Southeast Asia.

The furlough is temporary for now, but labor unions are keenly watching developments. They have urged both government and corporations to build stronger supply chain resilience and diversify sourcing strategies. In addition, unions want to protect workers from any fallout from sustained disruptions.

The following weeks will be essential to determine if production begins as expected in July. Otherwise, continuing supply limitations and softening global demand could significantly hinder Indonesia’s footwear manufacturing industry and its workers.

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