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Central Java records highest number of layoffs in Indonesia
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Workers make hand-rolled cigarettes on Sept. 2 at an unidentified factory in Kudus, Central Java. Despite low wages, Central Java recorded the highest number of layoffs this year as of Sept. 26. (Antara/Yusuf Nugroho)
C
entral Java has recorded the most layoffs of any province this year, with 14,767 as of Sept. 26, according to the Manpower Ministry.
Following Central Java, Banten recorded 9,114 layoffs, while Jakarta had 7,469.
Nationwide, there have been almost 53,000 layoffs this year, with 6,573 in September.
The processing sector was the most affected with 24,013 layoffs, followed by the services sector with 12,853 and agriculture with 3,997.
The ministry’s industrial relations and social security development director general, Indah Anggoro Putri, said on Sunday that the total number of layoffs was higher than in the same period in 2023.
Manpower Minister Ida Fauziyah acknowledged the high number of layoffs and said efforts were ongoing to mitigate them through dialogue between management and workers.
"We continue to mitigate so that layoffs do not occur. So our efforts to bring together management and workers can reduce layoffs," said Ida, as quoted by kompas.com.
However, critics such as Aulia Hakim of the Confederation of Indonesian Trade Unions (KSPI) contended that Central Java's high layoff rate disproved the belief that low wages helped prevent layoffs.
"In Central Java, which is known as an area with low wages, the number of layoffs was actually the highest, especially in the manufacturing, textile and processing industry sectors," Aulia said on Sept. 9.
“Mass layoffs in Central Java prove that low wages are not the solution.”
Aulia also criticized the Job Creation Law, saying the law had made it easier for employers to lay off workers.
"This is the crux of the problem. When the Job Creation Law was enacted, recruitment became easy, but layoffs were also easy to do," he said, as quoted by lingkarjateng.id.
He emphasized the importance of synergy between the Central Java provincial administration and community organizations such as labor unions to overcome these problems.
