News - KDM: Shift in Industrial Investment Triggers Wave of Layoffs in Cimahi

KDM: Shift in Industrial Investment Triggers Wave of Layoffs in Cimahi

Aug, 05 2026

Bisnis.com, BANDUNG — West Java Governor Dedi Mulyadi (KDM) considers the layoffs (PHK) occurring in the garment industry, including the closure of PT Namnam Fashion Industries in Cimahi City which impacted 178 workers, to be part of a labor-intensive investment shift toward regions with lower labor costs.

KDM stated that this phenomenon is common in labor-intensive industries such as garments, textiles, and footwear, which rely heavily on production cost efficiency.

"Labor-intensive companies are indeed like that. Once they reach a certain point and another region offers lower labor costs, they usually move. That happens everywhere," he said on Tuesday (July 4, 2026).

He explained that the nature of labor-intensive industries differs from capital-intensive ones, which tend to stay long-term. Therefore, companies in the garment sector have a tendency to relocate their production bases when alternative locations are deemed more competitive.

"For labor-intensive industries, especially garments, it must be understood that within their business cycle, they may close or change locations," he said.

Nevertheless, KDM ensured that job opportunities in West Java remain widely available. He noted that several new industrial estates are currently expanding and require a large workforce, particularly in the footwear and garment sectors.

According to him, labor demand has shifted to eastern West Java regions such as Indramayu, Majalengka, and Garut Regencies, along with the growth of manufacturing investment in those areas.

"Today, there are also many new job openings. Industrial estates continue to grow. Recruitment for the shoe, footwear, and garment industries is massive in Indramayu, Majalengka, including Garut," he said.

KDM believes that this investment shift is driven by a more competitive labor cost structure compared to older industrial regions such as Greater Bandung, Karawang, Purwakarta, and West Bandung.

"While they used to concentrate in Bandung, Karawang, Purwakarta, or West Bandung, they are now shifting because wages in Indramayu and Majalengka are lower, prompting companies to invest there," he said.

Therefore, KDM urged affected workers to start exploring job opportunities in these new industrial estates. "If they want to continue working in the garment or footwear sectors, they must be prepared to move to those regions. The demand for labor remains huge, reaching tens of thousands of people," he said.

Previously, PT Namnam Fashion Industries in Cimahi City ceased operations, resulting in 178 workers losing their jobs. Based on an investigation by the Cimahi City Manpower Agency, the company suffered a prolonged decline in orders until it was no longer able to sustain production activities.

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Suryacipta Targets Investment Expansion in Subang

Industrial estate managers still see opportunities for manufacturing investment growth in Indonesia, especially in West Java, which has long been one of the main destinations for foreign direct investment (FDI). PT Suryacipta Swadaya, a subsidiary of PT Surya Semesta Internusa Tbk (SSIA), believes that the industrial ecosystem in West Java is relatively mature, making it attractive for foreign investors looking to expand in Southeast Asia. General Manager Sales & Tenant Relation of Suryacipta, Binawati Dewi, said that foreign investor interest is still visible in several business meetings conducted by the company with potential investors in Hong Kong earlier this March. “Investors still see Indonesia as one of the production bases in the region,” she said in a press release at the end of this week. However, investment interest is now shifting toward manufacturing sectors with higher added value that require infrastructure support and operational certainty. Expand article logo Continue reading According to Dewi, this trend is also reflected in the occupancy rate of the industrial estate managed by the company. Suryacipta City of Industry in Karawang is said to have reached a mature stage with less than 10 hectares of industrial land remaining. [Source]

Mar, 16 2026

To Encourage a Conducive Investment Climate, the Regent of Garut Attends the National APINDO Forum in Bandung

GARUT BERKABAR, BANDUNG – Garut Regent, H. Abdusy Syakur Amin, participated in the opening of the 34th National Working Meeting and Consultation (Rakerkonas) of the Indonesian Employers Association (APINDO) 2025, held in Bandung on Tuesday (August 5, 2025). His presence reflects the commitment of the Garut Regency Government to strengthen cross-sector collaboration in order to create a healthy and sustainable business climate. The event was also attended by West Java Governor Dedi Mulyadi, who emphasized the importance of synergy between the central government, local governments, and the business world. According to him, the West Java Provincial Government has a strategic responsibility to coordinate all these elements in order to strengthen the region's economic competitiveness. “I have already stated that my position is as an orchestrator between the central government, local governments, and the business world,” said Governor Dedi. He also revealed that the appointment of West Java as the host of Rakerkonas is proof of the province's success in attracting investment. By the first half of 2025, investment realization in West Java had reached a fantastic figure of IDR 72.5 trillion. “This high level of investment is certainly not a coincidence. There are strategic policies such as the eradication of thuggery in industrial areas that have helped to create a safer and more business-friendly climate,” he continued. The governor also highlighted the importance of coordination between regional heads to accelerate economic growth. Currently, labor-intensive industries are beginning to develop in eastern West Java, such as Indramayu, Kuningan, Cirebon, and Majalengka, while capital-intensive industries are beginning to grow significantly in Subang. The presence of the Regent of Garut in this forum is expected to open up opportunities for cooperation and new investment in Garut Regency, while strengthening the role of the region in creating an integrated and competitive business ecosystem. [SOURCE]

Nov, 26 2025

DPMPTSP Bandung City Records Investment Reaching Rp6 Trillion

The Investment and One-Stop Integrated Service Office (DPMPTSP) of Bandung City, West Java, recorded that investment realization in the Flower City reached Rp6 trillion at the end of the second quarter of 2024, or 82.32 percent of the annual target set at Rp7.3 trillion. “This amount was achieved quite significantly thanks to the efforts of friends from DPMTSP Bandung City who continue to make efforts to achieve investment realization of up to Rp6 trillion by the end of the second quarter of this year,” said Head of DPMPTSP Bandung City Ronny Ahmad Nurudin in Bandung, Wednesday (21/8/2024). 1. Transportation and warehousing dominate Ronny said the Rp6 trillion investment was dominated by the transportation, warehousing, and telecommunications sectors, which accounted for Rp2.9 trillion. “Bandung is a service city, so the transportation sector, telecommunications warehouses still dominate. The second is other services, the third is the chemical and pharmaceutical industry, then hotels and restaurants, the last is the housing sector, industrial estates and offices,” he said. He revealed that until the end of the second quarter of this year, the realization of domestic investment (PMDN) dominated investment in Bandung City by contributing Rp4.1 trillion, while the category of foreign investment (PMA) reached Rp1.9 trillion. “Most foreign investors have operational business activities so that the additional investment is not too significant,” he said. 2. Ease of investment continues to be improved Ronny said there are several factors that make foreign and domestic investors interested in investing in Bandung, one of which is the ease of service provided by DPMPTSP for potential investors. “We also provide OSS assistance services, Sakedap (Facility Anjungan Kemudahan Perizinan) services in sub-districts and market industry centers for micro businesses,” Ronny said. 3.Confident that the year-end target will be met Furthermore, he said that with the achievement of investment realization at the end of the second quarter of 2024 which had reached 82.32 percent, his party was optimistic that investment in Bandung City could exceed the predetermined target. “We are very optimistic, even though we also get additional targets from the province, but hopefully we will continue to work together with business people in Bandung,” he said. SOURCE

Aug, 22 2024

Investment Enters Karawang, Job Opportunities Become More Open

The Government of West Java Province signed a Memorandum of Understanding (MoU) with PT Deli Indonesia Office Technology to accelerate development initiatives in West Java. The MoU was signed by the Governor of West Java, Dedi Mulyadi, at SMKN 1 Karawang on January 28, 2026. On the same occasion, another MoU was signed with PT CBL Solusi Logistik regarding the development of the Cikarang Bekasi Laut Inland Waterways transportation route in West Java. Through this collaboration, the regional government encourages companies to prioritize hiring workers from local communities. This policy aims to increase employment opportunities for residents as new investments continue to enter West Java, particularly in Karawang Regency. In addition to providing job opportunities, the company also offers internship programs for students of SMKN 1 Karawang. Students can participate in a three-month practical training program, and after completing the program and graduating from school, qualified students may be directly recruited by the company without undergoing additional selection processes. The West Java Provincial Government also offers foreign language training programs for 40 students from SMKN 1 Karawang, consisting of 20 students studying Mandarin and 20 students studying English. The six-month training program is funded by the provincial government and aims to prepare human resources capable of communicating with foreign investors, particularly those from China. PT Deli Indonesia Office Technology plans to build a factory producing office equipment such as attendance machines, paper shredders, and office stationery. The factory construction is scheduled to begin in March 2026 with an investment value of approximately USD 150 million and is expected to be completed by 2027. Once operational, the company is projected to employ around 3,000 workers. In addition to manufacturing investment, the partnership with PT CBL Solusi Logistik aims to develop a sea transportation route through the Cikarang Bekasi Laut canal. This route is expected to serve as an alternative logistics transportation corridor that is more efficient and free from traffic congestion, connecting Babelan, Tanjung Priok Port, and eventually Patimban Port. Overall, the incoming investment in Karawang not only contributes to regional economic growth but also creates new employment opportunities and improves the readiness of the local workforce through training and vocational education programs. [Source]

Mar, 06 2026

Investor Confidence Strengthens, Realized Investment in Majalengka Reaches IDR 3.36 Trillion

TIMES JABAR, MAJALENGKA – Amidst the challenging dynamics of the national economy, Majalengka Regency is actually showing signs of optimism. From January to December 2025, foreign and domestic investment continued to flow, affirming Majalengka's position as a region of increasing importance in West Java. Data on realized Foreign Direct Investment (PMA) and Domestic Direct Investment (PMDN) shows that Majalengka recorded an investment value of IDR 3.36 trillion, or more precisely IDR 3,364,801,621,234. This achievement was recorded through 2,198 Investment Activity Reports (LKPM) submitted throughout 2025. This figure is not just a statistic. Majalengka's investment contributed 1.13 percent to the total realized investment in West Java Province, which reached IDR 296.82 trillion, reflecting increasing business confidence in the investment climate in the region. The Head of the Majalengka Regency Investment and One-Stop Integrated Services Agency (DPMPTSP), Ucu Sumarna, assessed this achievement as the result of the local government's consistent efforts to build certainty and a comfortable business environment. "Thank God, Majalengka's investment realization continues to move positively. This is an indicator that Majalengka remains trusted and attractive to investors, both domestic and international," said Ucu, Monday (February 2, 2026). According to him, the Majalengka Regency Government continues to strengthen investment competitiveness through simplifying licensing processes, accelerating services, and promoting the region's sustainable potential. Strategic infrastructure support is an added value that further strengthens investment attractiveness. "Majalengka boasts a superior industrial area, the presence of the West Java International Airport, and continuously developing regional connectivity. These are important factors for investors in determining their business locations," he said. Going forward, the local government is targeting not only increasing investment value but also equitable distribution in the investment sector. The focus is directed so that investment is not concentrated in a particular sector, but is able to drive labor-intensive sectors and strengthen the local economy, so that the benefits can be felt more widely by the Majalengka community. [SOURCE]

Feb, 04 2026

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