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The impact of rising fuel prices and unstable world economic conditions have raised the issue of PT Kahatex laying off some of its employees whose contracts have expired. However, the giant textile company dismissed the allegation that 3,000 contract employees of PT Kahatex were laid off unilaterally. General Manager of Public Relations and Environment of PT Kahatex, Luddy Sutedja said, admitting that the pandemic condition that has been going on for 3 years has made it difficult for companies other than PT Kahatex to continue to decline in terms of orders.

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Then continued with the increase in fuel which has an impact on increasing the company's production costs.

"But actually, we can still manage this fuel price increase, but because of the long pandemic, our orders have decreased. The Ukraine war also affected us because our products entered Europe. Previously, the procedure was not as difficult as this, now everything is difficult, we have to get permission. That's it. And this is what causes our buyers (consumers) in Europe to have difficulty ordering from PT Kahatex," said Luddy.

In addition, said Ludy, there is a shift from coal energy to renewable energy, causing consumers to ask for energy changes. Kahatex must have started thinking about how to use solar thermal or solar cells that can replace coal.

"Well, this requires a high cost, that cost must be prepared. Now to get around that so that we can receive orders from Europe, we automatically have to adjust the use of renewable energy according to European standards. Based on meetings with various departments, one solution is to reduce number of employees by not extending their contracts, not just being laid off," he said.

Of the 3 000 contract employees of PT Kahatex, it has been done not to extend the contract since last August.

However, Kahatex also still has the heart not to immediately lay off all employees, but to consider based on the performance of contract employees starting with absenteeism, attitude with superiors, and loyalty to the company.

"Kahatex is not a company that arbitrarily does things without thinking, we still think about the social impact, environmental issues," he said.

"There are many people who support Kahatex's employees in Kahatex. Therefore, we continue to maintain good relations with the village, with the community, with community leaders," he said again.

Therefore, he said, starting from August 2022, a total of 632 employees whose contracts have expired. Of the 632 people whose contracts were not immediately terminated, only 60 were forced to terminate their contracts.

"Not layoffs, yes, of the total 60 contract employees whose contracts have expired, all of their rights have been fulfilled," he said.