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View all search resultsBusinesses urge investment climate reforms to prevent more layoffs
Apindo noted that every unresolved business obstacle weakens the multiplier effect needed to attract investment, expand production and create employment.
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Indonesian Employers Association (Apindo) chairwoman Shinta Kamdani delivers a speech during the 35th National Working and Consultation Meeting at Claro Hotel in Makassar, South Sulawesi, on Aug. 4, 2026. (Indonesian Employers Association (APINDO)/-)
T
he Indonesian Employers Association (Apindo) has called on the government to focus on resolving structural bottlenecks affecting businesses, arguing that preventing layoffs requires improving the investment climate rather than addressing labor issues only after workers lose their jobs.
Apindo chairwoman Shinta Kamdani said Indonesia's economic resilience would depend on its ability to address longstanding challenges faced by the real sector amid an increasingly uncertain global environment.
She said businesses were contending with geopolitical tensions, shifts in global trade policies, supply chain disruptions, as well as volatile energy and commodity prices, while also facing domestic obstacles such as high production and logistics costs, expensive energy, regulatory inefficiencies and weak labor productivity.
According to Shinta, these structural problems have undermined investment, production and job creation, making them the root cause of rising layoffs.
"If we truly want to prevent layoffs, we cannot only debate downstream issues. We must fix the upstream problems," she said in Makassar, South Sulawesi, on Tuesday, adding that every unresolved business obstacle weakens the multiplier effect needed to attract investment, expand production and create employment.
Apindo also highlighted broader labor market challenges, noting that around 67 percent of Indonesia's unemployed are young people, predominantly from Generation Z, while nearly 60 percent of the workforce remains employed in the informal sector, highlighting the need not only to generate jobs but also to create productive, quality and sustainable employment, the association said.
To help address business constraints, Apindo has established a Task Force on Debottlenecking Business Obstacles, an internal mechanism designed to identify, monitor and push for the resolution of issues affecting companies.
