Layoff Concerns Emerge at Indonesia’s No.2 Noodle Brand
Jakarta. The Manpower Ministry is monitoring reports of possible layoffs at Karunia Alam Segar, the manufacturer of Mie Sedaap, after complaints emerged that hundreds of workers at its factory in Gresik have seen their working hours sharply reduced ahead of Ramadan.
Minister Yassierli said he was closely tracking developments but stopped short of confirming any formal layoffs.
“We are monitoring the situation involving Mie Sedaap and will provide updates in due course,” Yassierli told reporters at the ministry’s office on Wednesday.
The issue has drawn public attention following reports that around 400 workers at the Gresik plant have, over the past month, been scheduled to work only two to three days a week, with frequent changes to shifts. Workers have voiced concerns over job security, including uncertainty surrounding holiday bonuses and potential severance pay.
Mie Sedaap is Indonesia’s second-largest instant noodle brand, operating in a market heavily dominated by its main rival. According to Top Brand Index 2026 data, Indomie controls 71.60% of the national instant noodle market, while Mie Sedaap holds 14.50%.
Responding to the reports, the company said the reduced working schedules were not linked to any specific seasonal or religious factor. Peter Sindaru, human resources and general affairs representative at Karunia Alam Segar, said production adjustments were a routine part of operations in labor-intensive manufacturing.
“As a labor-intensive manufacturing company, our operations are strongly influenced by market demand,” Peter said in a statement earlier this week. “Adjustments to production capacity are common and necessary to ensure the sustainability of the business.”
He added that the company routinely works with outsourced labor providers to meet additional workforce needs when demand rises, and scales down staffing levels when demand weakens. Such practices, he said, are standard across the manufacturing sector and comply with prevailing labor regulations.
“Decisions are not based on specific months or momentum,” Peter said. “They are made by considering market dynamics, operational needs and production planning, which can change over time.”
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