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BATAM, bhayaksa.net —- The labor conflict engulfing PT Ghim Li Indonesia in Batam has escalated significantly after the massive garment manufacturing plant abruptly halted all production activities. The financial crisis has left 1,025 workers in deep uncertainty due to the withholding of monthly wages and the threat of mass layoffs without clear severance pay.
The protest for worker rights unfolded rapidly through a series of critical events. Rumors of mass layoffs first circulated among workers back in May 2026 following initial reports of staff downsizing. The situation intensified on August 5, 2026, when an abrupt management shake-up occurred alongside a sudden change in the corporation’s legal status. The crisis peaked on September 7, 2026, when the factory at the Tunas Industrial Estate officially ground to a complete halt. Wages for August, typically disbursed on that date, were withheld under the pretext that local management was awaiting funds from the corporate headquarters.
In response to the growing uncertainty, hundreds of workers marched to and occupied the Batam City Parliament (DPRD) Building on Friday, September 11, 2026. Facing a deadlock, the workers decided to pitch makeshift tents around the factory premises starting Monday, September 14, 2026, keeping a close watch on the company’s valuable machinery to prevent assets from being secretly relocated before their entitlements are paid. The escalation continued on Wednesday, September 16, 2026, when approximately 300 worker representatives protested outside the Batam Mayor’s Office, demanding decisive action from the local government.
PT Ghim Li Indonesia is a major garment manufacturing enterprise that originally operated as a Foreign Direct Investment (PMA) affiliated with the Singapore-based Ghim Li Group, owned by a regional entrepreneur. The corporation collapsed due to a severe global financial hit, triggered by a massive stoppage of sportswear orders from the United States market. However, the dispute turned suspicious when the labor union uncovered apparent evasion tactics: the company’s legal status was switched to a Domestic Investment (PMDN), and its legal address was suddenly relocated from Batam to Bekasi, West Java.
Local government officials and worker representatives issued strong statements on Wednesday, September 16, 2026, during the mass demonstration outside the Batam Mayor’s Office. Interviewed by journalists at the scene on the same day, the Chairman of PC SPAI FSPMI Batam, Hartono, emphasized that the workers gathered solely to seek protection from the regional chief. “We came to the Batam Municipal Government building to appeal to the regional leadership so this crisis can be resolved immediately,” Hartono stated.
At the same location on Wednesday, September 16, 2026, an employee identified by the initials US, who has served the company since 2009, voiced the grievances of her colleagues during an interview on the Mayor’s Office terrace: “What will happen to us? Our wages are not being paid. We demand firm government pressure on the company to release what we are owed.”
Responding directly to the crowd’s demands on Wednesday, September 16, 2026, the Mayor of Batam and Head of BP Batam, Amsakar Achmad, came down to meet the workers, issuing an official statement committing the local government to oversee the case across multiple ministries. “We will not allow the company to evade its duties. We must fight for your rights. Rest assured, I will remain fully engaged until this problem is resolved,” Amsakar declared before the workers.
Meanwhile, on the same day, the Head of the Riau Islands Provincial Labor Department (Disnakertrans), Diky Wijaya, held a press briefing clarifying that the company’s wage allocation of IDR 12 billion is actually secured. However, disbursement is being intentionally paused to revise the joint statement clause. The Batam government wants to ensure the Singaporean management does not use the document to sever all legal ties and evade future severance obligations. As of mid-September, the central board of directors has yet to release an official statement to the public.
Reporter: Hilman
Editor: bhayaksa.net Team
