Mie Sedaap Producer Faces Layoffs, Promises Halt After Intervention
Jakarta – PT Karunia Alam Segar, the producer of Mie Sedaap instant noodles in Gresik, East Java, recently faced scrutiny following reports of layoffs affecting approximately 400 outsourced employees. The company initially attributed the decision to routine operational adjustments in response to market demand, but a subsequent intervention led to a promise to halt the layoffs.
Initial Layoffs and Company Response
Reports of the layoffs surfaced on February 23, 2026, raising concerns about potential attempts to avoid paying Tunjangan Hari Raya (THR), or holiday allowances. Peter Sindaru, Human Resources & General Affairs at PT Karunia Alam Segar, refuted these claims, stating the workforce adjustments were a standard practice within the labor-intensive manufacturing industry.
“As a labor-intensive manufacturing industry, the company’s operations are greatly influenced by the dynamics of market demand. Adjustments to production capacity are common to maintain business continuity,” Sindaru explained, according to detikFinance.
Sindaru further clarified that the company collaborates with labor supply agencies to manage workforce needs, adjusting staffing levels based on production requirements. The company emphasized that these adjustments were managerial decisions made in accordance with regulations, and not tied to specific events like Ramadan.
Intervention and Promise to Halt Layoffs
The situation took a turn when Deputy Chairman of the DPR RI, Sufmi Dasco Ahmad, announced that the company had agreed to cease the layoffs. “The result obtained is that Mie Sedaap will immediately stop the layoffs that occurred and Mie Sedaap also promised that there will be no more layoffs at Mie Sedaap,” Dasco stated, as reported by Bisnis.com.
Wings Group and Mie Sedaap’s Market Position
Mie Sedaap is a product of WingsFood, a subsidiary of the Wings Group. Founded in 1948 as Fa Wings, the Wings Group initially focused on soap production before expanding into a diverse range of consumer goods, including toothpaste, detergents, and food and beverages.
Mie Sedaap entered the instant noodle market in 2003, challenging the long-held dominance of Indomie, a product of the Salim Group. Initially underestimated, Mie Sedaap gained market share through competitive pricing, product quality, and a targeted marketing strategy focused on small shops in rural areas, eventually capturing around 15% of the national market, according to marketing analysis.