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View all search resultsLayoff wave spurs call for quick aid for firms, broader reforms
Indonesia recorded 32,389 layoffs in the first half of this year, with nearly one-fifth of the job losses occurring in West Java.
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Labor union members hold banners and wave posters on May 1, 2025, during a Labor Day rally in Jakarta. (AFP/Azwar Ipank)
A
s layoff figures continue to rise, the government has acknowledged that the trend is "difficult to avoid" amid mounting global economic pressures.
Nevertheless, labor unions are calling for immediate government intervention to help distressed companies stay afloat and protect jobs, while experts argue that the crisis exposes deeper structural problems that require long-term reforms to improve the business environment.
According to the Manpower Ministry’s Satu Data Kemnaker platform, Indonesia recorded 32,389 layoffs in the first half of this year, with nearly one-fifth of the job losses occurring in West Java. Monthly layoffs consistently exceeded 5,000 workers during the first four months of the year.
The ministry noted that the figures cover only workers registered as participants in the Job Loss Insurance (JKP) program, while labor unions said the actual number of layoffs is likely higher.
In response, President Prabowo Subianto established the Layoff Mitigation Task Force in May to anticipate a broader wave of job cuts, while also outlining several immediate measures to cushion the impact of layoffs.
The Confederation of Indonesian Trade Unions (KSPI) president Said Iqbal, who also serves as the President's special advisor on labor affairs, said the priority was to prevent layoffs wherever possible.
"If the company can still be saved, then it should be saved. If government policy intervention is needed, the state must step in. Businesses must be allowed to continue operating, while workers must also be protected from layoffs," Said Iqbal said in a press release on Wednesday, following reports of potential layoffs at two garment and textile manufacturers in Central Java that could affect nearly 1,500 workers.
