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View all search resultsLayoffs rise for fourth straight year, ministry data show
The government has logged another annual increase in layoffs, continuing a four-year trend that points toward a growing informal sector.
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Workers wave at the camera on Feb. 28, 2025, as they leave a factory of textile giant PT Sri Rejeki Isman (Sritex) in Sukoharjo, Central Java. (Antara/Mohammad Ayudha)
T
he government has logged another annual increase in layoffs, continuing a four-year trend that points toward a growing informal sector.
Last year, layoffs affected 88,519 workers registered under the Job Loss Insurance (JKP) program, according to data from the Manpower Ministry. The figure marks a 13-percent increase from the previous year and extends an increase in formal-sector layoffs observed since 2022, when 25,114 employees lost their jobs.
The Confederation of Indonesian Trade Unions (KSPI) believes the total number of 2025 layoffs to me much higher, given that the ministry figures do not capture the full picture.
In a press conference on Jan. 26, KSPI head Said Iqbal said last year’s layoffs may amount to 100,000 workers, as indicated by increasing claims to the pension program (JHT) under the Workers Social Security Agency (BPJS Ketenagakerjaan).
He explained that the Manpower Ministry data understated the number of layoffs in the country, as it only covered the JKP program, which does not include all formal-sector workers.
Meanwhile, the JHT program cited by the KSPI is mandatory for formal-sector workers, but not for those in the larger informal sector.
Said also noted that the Manpower Ministry only compiled layoff data reported by registered companies, while KSPI’s data is based on reports from the association’s members.
