Yamaha has confirmed it will close two of its music instrument factories in Indonesia, affecting 1,100 workers. According to Riden Hatam Aziz, President of the Federation of Indonesian Metal Workers' Union (FSPMI), the closures will happen in stages, with one plant shutting down in March and another by December 2025.

The first factory, operated by PT Yamaha Music Product Asia, is located in the MM2100 industrial area in Bekasi, West Java. This plant will halt operations by the end of March 2025, with 400 workers impacted. The second factory, owned by PT Yamaha Indonesia in Pulo Gadung, East Jakarta, will close at the end of December 2025, putting 700 employees at risk of layoffs.

Riden explained that Yamaha decided to move its piano production lines to China and Japan due to declining orders. “Both factories are part of the piano division. Because of falling demand, production will be relocated to China and Japan,” he said.

The labor union is currently negotiating with Yamaha to ensure affected workers receive their rights, including severance pay and compensation. “The union is discussing severance packages and other forms of compensation for the workers,” Riden added.

These closures come amid growing concerns about mass layoffs in Indonesia’s manufacturing sector. Said Iqbal, President of the Confederation of Indonesian Trade Unions (KSPI), revealed that Yamaha had already laid off 400 workers at its Bekasi plant and 700 at its Jakarta office earlier this year, bringing the total to 1,100.

Said warned that Yamaha’s move could trigger further job cuts, particularly in the electronics and electrical sectors. “Mass layoffs at these two Japanese companies due to production relocations to Japan and China are a warning sign of more layoffs to come,” he stated.

He urged the government to act swiftly, emphasizing that ministries overseeing industry, trade, labor, and economic affairs must follow President Prabowo Subianto’s directions to strengthen Indonesia’s industrial competitiveness. Without clear solutions, he cautioned, unemployment could rise, and the national economy might face significant pressure.

Said also called on President Prabowo to evaluate his ministers' performance, insisting that those unable to address these economic challenges should be replaced. “The national industry must be protected to prevent mass layoffs,” he stressed.

PHOTO: URBANJABAR

This article was created with AI assistance.