Cirebon. A total of 1,126 employees who were laid off by footwear company Yihong Novatex Indonesia in Cirebon, West Java, may potentially be rehired, a Manpower Ministry official said on Friday.

The company, which operates in the textile and footwear industry, is reported to have resumed operations after suspension due to labor strikes last month.

Indah Anggoro Putri, the ministry's Director General of Industrial Relations and Social Security, said Yihong Novatex Indonesia has already re-employed 200 of the laid-off workers. According to her, that number is expected to increase.

“Hopefully, God willing, all of them will be rehired,” she was quoted by Antara as saying.

Yihong Novatex is known to be a Chinese company that established a factory in Indonesia for export production needs since 2023.

On March 10, Yihong Novatex's management terminated 1,126 workers. Before the Eid al-Fitr 1446 Hijri holiday, the company settled the wages of the affected employees. They were also given severance pay and holiday allowances.

The company claimed that the decision was made due to a strike carried out by the workers, which significantly impacted factory operations. In addition, the budget efficiency policy issued by the government clients to reduce their orders, leading to decreased sales revenue.