BLITAR – Blitar severance pay dispute has entered a critical stage. Former workers of PT Bokor Mas and PT Pura Perkasa Jaya said the bankrupt company challenged their compensation claims while many employees still could not access social security benefits.

Former worker representative Yuni Rachmawati said the court-appointed curator had first approved total severance rights worth Rp 22 billion for workers. However, when the Commercial Court at Surabaya District Court announced the bankruptcy asset distribution on March 11, the amount dropped sharply to only Rp 6 billion.

Yuni said the situation became more painful after PT Bokor Mas management filed an objection lawsuit on March 25. The company argued that even Rp 6 billion was still too heavy to pay for 533 former workers.

“That is what we deeply regret. No other party filed an objection during the eight-day objection period. Instead, the company filed a lawsuit because it considered Rp 6 billion too heavy,” she said.

She added that the company had already sold major assets in Mojokerto. Those assets alone reportedly reached Rp 300 billion in December 2025.

Workers now face even greater pressure because they also cannot withdraw Job Loss Insurance benefits, known as JKP, from BPJS Ketenagakerjaan.

The problem started because PT Bokor Mas failed to pay employment insurance contributions for 10 months. This condition blocked workers from accessing benefits they should have received after losing their jobs.

Yuni said BPJS Ketenagakerjaan also lost a weak position in the bankruptcy process. As a concurrent creditor, BPJS only received Rp 54 million from unpaid contribution claims worth Rp 1.43 billion.

“This is truly an emergency condition. Workers do not receive severance pay, and JKP benefits also cannot be disbursed,” she stressed.

She said workers are actually preferred creditors whose rights should come first. Instead, many of them remain stuck without financial certainty.

So far, 533 former workers remain trapped in uncertainty. They lost their jobs, unpaid wages, and also faced delays in claiming Old Age Security (JHT) and Job Loss Insurance (JKP).

Many of them still wait while the legal dispute in the Commercial Court moves slowly. The company’s legal challenge continues to delay the compensation process.

“We see this as an emergency situation. Workers have lost everything, while the legal process in the commercial court continues because of the company’s objection lawsuit,” Yuni added.

The case began after the legendary cigarette manufacturers PT Bokor Mas and PT Pura Perkasa Jaya went bankrupt in mid-2023. The Surabaya Commercial Court issued the ruling after both companies faced severe financial problems.

Their total debt reportedly reached around Rp 800 billion. The ruling immediately stopped factory operations and triggered mass layoffs involving hundreds of workers in Blitar.

Until now, former employees continue fighting for their severance rights. The asset auction process remains delayed, and legal uncertainty still surrounds their future.