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Businesses fear new layoff task force could lead to criminalization
President Prabowo has promised to form a layoff task force to prevent arbitrary dismissals of employees and ensure companies adhere to fair labor practices, as demanded by workers attending the May Day rallies.
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Balancing national concerns: Employees of a garment company work in a factory in Central Java, in this undated photo. (Central Java Regional Government/-)
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usinesses are wary that President Prabowo Subianto’s plan to form a special task force on layoffs could lead to the criminalization of employers rather than preventing mass job cuts.
The Indonesian Textile Association (API) insists that the task force, meant to resolve labor disputes and reduce terminations, must not stray from its preventive mission.
“It’s a worrying idea for any labor-intensive industry player,” API executive director Danang Girindrawardana said on Thursday, as quoted by Bisnis.
“If it turns into a tool for criminalizing employers, it will scare businesses away from operating or expanding.”
Read also: Prabowo pledges stronger worker protections, labor reform at May Day rally
The task force could risk veering off from its original purpose as a conflict resolution tool and instead become a vehicle for financial audits that might punish businesses rather than assist them, he warned.
Rather than duplicating existing labor frameworks, which were already governed by tripartite consultations involving the government, workers and employers, he said the task force should complement what was in place.
