Hundreds of shipyard workers left unpaid, sub-contractor disappears, and labour rights in crisis.

In a disturbing case of labour exploitation, around 200 shipyard workers in Batam have been left stranded without their wages after their subcontractor, PT Global Tirha Sinergi (GTS), disappeared. The workers, who had been engaged in shipbuilding projects under the main contractor PT Bintang Inti Persada Shipyard (BIS), have not received their salaries since December 2024. With wages amounting to IDR 980 million (SGD 81,340) still unpaid, the workers have been left in a state of uncertainty, struggling to support their families. As they turn to law enforcement and government agencies for help, their case highlights the alarming vulnerabilities of workers in the maritime industry, where exploitation is often overlooked, and regulations remain inadequate.

Indonesia’s shipbuilding industry is one of the key contributors to Batam’s economy, employing thousands of workers across various shipyards. However, many of these workers are employed under subcontracting arrangements, leaving them vulnerable to financial exploitation. The latest case involving PT GTS and PT BIS exposes a troubling pattern—subcontractors taking advantage of the system, failing to pay their employees, and disappearing without accountability. The affected workers, now struggling without pay, have taken their complaints to local authorities, including the Batu Ampar Police, Department of Manpower (Disnaker), and the Regional House of Representatives (DPRD), but have yet to receive a clear resolution.

The Disappearing Subcontractor: A Tale of Betrayal

The workers’ ordeal began in December 2024, when wages started to be delayed without explanation. By February 2025, concerns escalated as their employer, PT GTS, failed to issue payments altogether. When workers attempted to reach out, they found that the subcontractor had vanished. RJ, one of the affected workers, expressed frustration over the situation:

“We tried to mediate with PT BIS, but they told us to file a report. We don’t even know where PT GTS is based.”

The main contractor, PT BIS, denied responsibility, stating that they had already transferred funds to the subcontractor. However, there is strong suspicion that PT GTS had already received the payment before fleeing, raising concerns about fraudulent financial practices within the industry. Ngadino, the owner of PT GTS, was last heard from on February 15, 2025, when he informed workers that he was “looking for money.” Since then, his phone has been inactive, and his wife’s contact number has also been changed. According to social media traces, his family is suspected to have relocated to Yogyakarta.

Another affected worker, LS, voiced his frustration:
“We work in Batu Ampar, but our salaries have been stolen. PT BIS refuses to compensate us, and no one is helping us.”

The lack of accountability from both PT GTS and PT BIS has intensified the crisis. With no clear legal protection, these workers are left scrambling for justice, relying on DPRD Batam and Disnaker to intervene.

No Contracts, No Safety

Adding to the severity of the issue, the workers revealed that they had been employed without official contracts or labour protections. Many were hired simply by submitting a photocopy of their ID cards, leaving them without legal documentation to support their claims. This practice, although common in subcontracting, makes it difficult for workers to claim their rights when disputes arise.

One worker, RJ, explained the dire conditions:
“We have no BPJS employment insurance, no contracts, just photocopies of our IDs. How can we fight for our wages when we were never given proper employment documents?”

Without formal contracts, these workers are ineligible for government-mandated workers’ compensation, further exacerbating their financial instability. Many workers risk their lives daily in dangerous shipyard conditions, handling heavy machinery without proper safety gear or insurance coverage. Yet, when their wages are withheld, they have little legal recourse.

This case serves as a stark reminder of how labour laws in Indonesia continue to fail subcontracted workers. Despite policies requiring fair employment practices, many employers find loopholes, leaving workers unprotected.

When workers reported the issue to the Batu Ampar Police Station, they were advised to take their case to Disnaker, which then redirected them to the provincial authorities and DPRD Batam. This bureaucratic shuffle has delayed any meaningful action, prolonging the suffering of affected workers.

One worker, RJ, detailed the challenges in seeking justice:
“We reported to the police, then to Disnaker, and then to DPRD, but no real action has been taken. We are just being sent from one office to another.”

Meanwhile, the administrative officer of PT GTS, NA, confirmed that Ngadino, the subcontractor’s boss, borrowed IDR 50 million (SGD 4,150) from his father to pay salaries before disappearing. This further suggests that PT GTS had already mismanaged or misappropriated funds, leaving workers stranded.

As legal proceedings drag on, workers continue to face financial hardship, unable to support their families or pay for basic necessities.

This case is just one of many examples of how Indonesia’s labour system fails its most vulnerable workers. Subcontracting remains a deeply flawed system that enables financial abuse, where main contractors evade responsibility and subcontractors disappear when things go wrong. Unless the government strengthens oversight on subcontracting agreements and ensures fair wages are paid directly to workers, these injustices will continue.

Labour rights activist Siti Nur Aisyah criticised the lack of enforcement, stating:
“The government must revise labour laws to prevent such subcontractor fraud. We need stronger penalties for companies that fail to pay their workers.”

If authorities fail to take decisive action, international investors could begin to question Batam’s credibility as a manufacturing and shipbuilding hub, ultimately harming Indonesia’s economy in the long run.

The plight of Batam’s shipyard workers is a glaring example of the labour exploitation crisis that plagues many industries in Indonesia. The disappearance of a subcontractor, the lack of formal employment contracts, and the government’s sluggish response expose deep-rooted flaws in labour regulations. While the DPRD Batam and Disnaker are now involved, the outcome remains uncertain. Until stronger legal protections and direct wage payment mechanisms are enforced, similar cases will continue to emerge. This is not just a local issue—it is a warning sign that Indonesia’s workforce remains at risk of exploitation unless systemic reforms are implemented.

Sources: Batam News, (2025), Tribun News (2025)

Keywords: Batam, Shipyard Industry, Labour Exploitation, Unpaid Wages, Subcontractor Fraud, Worker Protests, Wage Disputes.