Surabaya Company Accused of Holding Employee Diplomas, Operating Without proper Licensing
April 15, 2025
A Surabaya-based company, UD Sentosa Seal, faces serious allegations of unethical and illegal labor practices, including the detention of employee diplomas and operating without a required business license. Local authorities are investigating, with potential legal ramifications for the company.
Allegations of Diploma Detention and Unlicensed Operation
The Surabaya City Regional Representative Council (DPRD) is investigating UD Sentosa Seal following accusations that the company is holding the diplomas of 31 employees and operating without a valid Business Identification Number (NIB), a basic requirement for legal business operation in Indonesia.this situation mirrors concerns within the U.S.regarding fair labor practices and the potential exploitation of workers, particularly in industries with a high demand for skilled labor.
during a hearing on Tuesday, April 15, 2025, Dr. Akmarawita Kadir, Chair of Commission D of the Surabaya City DPRD, expressed her surprise at the conflicting accounts. “I was quite surprised. Mrs. Nila said that her diploma was detained, there was even a proof. But when asked to Mrs. Diana, as the owner, she said he did not know anything about the detention of the diploma,” Dr. Kadir stated,highlighting the discrepancies that prompted further examination.
The U.S. Fair Labor Standards Act (FLSA) sets similar standards for minimum wage, overtime pay, and recordkeeping, aiming to protect workers from unfair treatment. While the FLSA doesn’t directly address diploma withholding, the underlying principles of fair employment and preventing worker coercion are relevant.
The Plight of the Alleged Victims
The DPRD is treating the 31 employees as potential victims of labor violations. “we consider these 31 people to be victims. And if true, this is not only a violation of the law, but also a violation of human rights and ethics,” Dr.Kadir emphasized. The allegations extend beyond diploma retention, including claims of unilateral salary reductions and potential confinement, painting a concerning picture of the company’s operational practices.
in the U.S., similar cases of wage theft and worker exploitation are frequently enough brought to light by the Department of Labor, which has the authority to investigate and prosecute employers who violate federal labor laws. As a notable example, a 2023 investigation by the Department of Labor found a California garment manufacturer was illegally paying its workers piece rate, resulting in critically important wage violations.
Authorities Respond: Investigation and Potential Penalties
The Surabaya City Manpower Office and the East Java Province are coordinating to conduct a thorough investigation into UD Sentosa Seal.Achmad Zaini, Head of the Surabaya City Industry and Manpower Office (disperinaker), confirmed this coordination, stating that they have “coordinated supervision. If needed, the provincial supervisor can conduct a search with the support of the police.”
Tri Widodo, Head of the Supervision and K3 Disnakertrans of East Java Province, indicated that legal action would be pursued if the company fails to cooperate. Tri Widodo said in a hearing at the Surabaya DPRD Commission D: “The company does not explicitly denied or recognize (Tilapia is his employee and he holds a diploma). Their answers are only ‘forgetting’. Now this is what makes it challenging to settle.” He further added,”Tomorrow is the examination. We have issued a memorandum of examination because it is considered to be in the way of the examination. If it remains absent, we will continue to the two memorandum.”
If the company continues to ignore the summons, the East Java Manpower and Transmigration disnakertrans is prepared to escalate the matter.”If seven days after the two memorandum is not carried out, we can do pro Justitia, and enter the realm of law,” Tri Widodo asserted, signaling a serious commitment to enforcing labor laws.
He emphasized, “Certificates or documents attached to individuals, such as diplomas, may not be held or made into collateral, whatever the term is entrusted.”
The potential consequences for UD Sentosa Seal are severe, including the revocation of its business licenses if found guilty of serious violations. The DPRD has urged relevant Surabaya agencies to rectify any irregularities in the company’s licensing. “If a violation is found, the recommendation from the DPRD is that the relevant agencies in Surabaya correct all company licenses. If necessary, the permit is revoked,” officials stated.
Concerns Over Multiple Entities and Potential for Continued Abuse
Adding another layer of complexity, there are suspicions that UD Sentosa Seal operates through multiple entities with similar names, potentially numbered 1 through 10. This raises concerns about potential efforts to obfuscate operations and evade regulatory oversight.
“We ask the Disnaker to explore everything, which is legal, which one is not. If it is not according to the rules, just close it. Don’t let a new victim appear,” authorities urged, emphasizing the need for a extensive investigation.
The DPRD has also offered support to the alleged victims,encouraging them to come forward without fear. “Go ahead if mrs. Diana wants to report back. But employees don’t be afraid. They are victims. We are ready to help find a lawyer if necessary,” officials affirmed, demonstrating a commitment to protecting worker rights.
Implications and Broader Context
This case highlights the importance of robust labor law enforcement and the need for businesses to operate ethically and transparently. The alleged actions of UD sentosa Seal not only violate Indonesian law but also undermine the trust between employers and employees. The outcome of the investigation will likely have significant implications for labor practices in the Surabaya region and serve as a warning to other companies that may be engaging in similar practices.
For U.S. readers, this situation underscores the global nature of labor rights issues. While the specifics of Indonesian labor law differ from U.S. regulations, the core principles of fair treatment, safe working conditions, and the right to due process are universal. Cases like this serve as a reminder of the ongoing need for vigilance and advocacy to protect workers’ rights both at home and abroad.
Key Players
| Name | role | Meaning |
|---|---|---|
| Dr. Akmarawita Kadir | Chair of Commission D, Surabaya City DPRD | Leading the investigation and advocating for the alleged victims. |
| Nila Handiarti | Employee of UD Sentosa Seal | Alleged victim whose case triggered the broader investigation. |
| Jan Hwa Diana | Owner of UD Sentosa Seal | Company owner facing allegations of illegal and unethical labor practices. |
| Achmad Zaini | Head of surabaya City Industry and Manpower office (Disperinaker) | Coordinating the investigation with the East Java Province. |
| Tri Widodo | Head of Supervision and K3 Disnakertrans, East java Province | Preparing legal steps if the company is uncooperative. |
Interview: Labor Rights expert on Surabaya Company Allegations
April 18, 2025
Introduction
Welcome to Archyde News. Today, we delve into the troubling allegations surrounding UD Sentosa Seal, a Surabaya-based company accused of labor violations. Joining us is Ms.Anya Sharma, a leading labor rights expert and Senior Researcher at the Global Labor Institute. Ms. Sharma, thank you for being here.
The Core of the Issue: Diploma Detention and unlicensed Operation
Archyde News: The central issue seems to be the alleged detention of employee diplomas and the company operating without proper licensing. How meaningful are these issues in the context of labor rights?
Anya Sharma: These allegations are deeply concerning and a clear violation of worker rights. Holding diplomas effectively traps individuals. It limits their ability to seek other employment, thus creating a vulnerable workforce easily exploited. Operating without a valid Business Identification Number (NIB) also raises serious concerns. It suggests a potential disregard for regulatory oversight. These actions set a dangerous precedent, that undermine the trust and respect that should be present between employers and their employees.
The Inquiry and Legal Ramifications
archyde News: Authorities are actively investigating. What legal ramifications could UD sentosa Seal face if these allegations are proven true?
Anya Sharma: The legal consequences could be severe.We’re talking about potential fines, revocation of business licenses, and even criminal charges depending on the severity of violations. The fact that the DPRD is involved shows the gravity of the situation. It is especially crucial for any company accused of worker exploitation to be fully transparent and cooperative with the investigation, as failure to do so only increases scrutiny and potential penalties.
International Parallels and Global Labor Standards
Archyde News: The article draws parallels to labor practices in the U.S. What lessons can be learned from similar cases globally?
Anya Sharma: Labor rights violations are a global issue. the same dynamics of exploitation and power imbalances can be seen across diffrent countries. The US Fair Labor Standards Act, for example, provides a framework for ensuring fair treatment. However, the core principles remain the same: fair wages, safe working conditions, and the right to organize.Regardless of location, workers must have the agency to advocate for themselves without fear of reprisal.
The Plight of the Employees and the Importance of Advocacy
Archyde News: The 31 employees are being treated as potential victims. How crucial is it for them to have access to legal representation and support?
Anya Sharma: Absolutely critical. These individuals need legal guidance and support to understand their rights. It can also help navigate the legal process. organizations like the DPRD’s offer to help find a lawyer are immensely valuable. It’s essential that these employees feel safe and supported in coming forward. They should not fear retribution for speaking out.
Potential for Multiple Entities and Regulatory Oversight
Archyde News: There are suspicions UD Sentosa Seal operates through multiple entities. How does this complicates the investigation?
Anya Sharma: Operating through multiple entities obscures the operational structure and intended purpose. This strategy makes it challenging to trace financial flows,determine obligation,and evade accountability. It effectively challenges regulatory oversight, as authorities must work harder to connect the dots and uncover the true scope of the company’s practices.”
Conclusion
Archyde News: What message do you hope this case sends to other companies in the region and beyond?
Anya Sharma: This case serves as a stark reminder that labor rights are basic. Businesses need to prioritize ethical practices and transparency. Companies should understand that there are legal consequences for exploitation. By treating employees fairly, respecting their rights, and operating within the law, any business can promote a work environment that benefits everyone. I’d also add that workers’ rights are human rights and should be treated as such.
Archyde News: Ms. Sharma,thank you for your insights.
Anya Sharma: Thank you for having me.
A Call to Action
Archyde News: What do you think? How can workers ensure their rights are protected? Share your thoughts in the comments below.
