Bekasi. After 33 years of operating in Indonesia, South Korean tire manufacturer Hung-A Indonesia is set to cease its operations in Cikarang, Bekasi Regency, West Java, on February 1, 2024. The closure will result in the termination of employment for over 1,000 workers.

The Head of the Industrial Relations Division at the Labor Office (Disnaker) of Bekasi Regency, Nur Hidayat, said that the number of employees affected by the termination of employment reaches 1,170 people, with the majority having permanent employee status.

According to Nur, the labor office received a notice of production termination from the company on Jan. 15, 2024. The company has been operating for 33 years.

"The closure is because they have received no orders for 2024," said Nur Hidayat on Thursday.

Hung-A Indonesia exports over 70 percent of its products to Europe. Growth momentum in the European Union remains very weak in 2023. The economy has barely grown last year, recording zero increase in the first quarter, 0.2 percent growth in the third, and a fall of 0.1 percent in output in the third quarter.

Nur said that the company will hold several meetings to settle the severance of the employees.

On Tuesday, Hung-A Indonesia announced it would close its factory facility in Cikarang, West Java.

"Starting from Feb. 1, 2024, the company Hung-A is closing its operational activities. Everyone here, including me, will be affected by the layoff. And starting today, all employees will be laid off," said a representative of the management in a viral video.

In the video, Hung-A employees are seen standing and listening to the announcement by a representative of the management.