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Employers call on govt to stem layoffs, boost competitiveness

At least half of all businesses nationwide have carried out layoffs so far this year, according to a survey conducted by the Indonesian Employers Association (Apindo).

Ruth Dea Juwita (The Jakarta Post)
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Wed, July 30, 2025 Published on Jul. 30, 2025 Published on 2025-07-30T12:52:45+07:00

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Uncertain economy: Workers are pictured on July 17 at a factory of fabric and garment producer PT Sari Warna Asli in Surakarta, Central Java. Uncertain economy: Workers are pictured on July 17 at a factory of fabric and garment producer PT Sari Warna Asli in Surakarta, Central Java. (Antara/Maulana Surya)

E

mployers have called on the government to ramp up support for domestic firms to stay afloat and remain competitive, as widespread layoffs reflect investor concerns over an uncertain economic outlook.

At least half of all businesses nationwide have carried out layoffs so far this year, according to a new report from the Indonesian Employers Association (Apindo), which warned that the figure could grow further through the end of 2025.

“We all agree that these layoffs are not isolated incidents. They are real, ongoing and will continue to unfold,” Apindo chairwoman Shinta Kamdani told a press briefing on Tuesday at the lobby group’s headquarters in Jakarta.

Apindo will hold its 34th national working and consultation meeting in Bandung, West Java, from Aug. 4–6 to address business challenges amid a weak domestic economy, policy uncertainty and external pressures.

“This is no longer a seasonal phenomenon. It has become a serious structural issue that requires comprehensive attention,” she continued.

Read also: Layoffs surge in manufacturing, retail, govt data suggest

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Citing data from the Workers Social Security Agency (BPJS Ketenagakerjaan), Shinta said roughly 150,000 workers had been laid off from January through June of this year, and more than 100,000 of them had already filed for benefits. 

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