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Jakarta Post

Massive layoffs inevitable: Businesspeople

  • Nurfika Osman

    The Jakarta Post

Jakarta   /   Fri, February 22 2013   /  10:30 am

Extensive layoffs in Indonesia’s manufacturing and service sectors are growing inevitable as the businesspeople’s appeal to the government to suspend the rise in minimum wages goes unheeded, a senior businessman says.

Indonesian Employers Association (Apindo) chairman Sofjan Wanandi said that at least 500,000 workers in about 1,500 companies across the country might lose their jobs in March as the companies were no longer able to pay their workers in accordance with the new minimum wages.

“I think half a million is the smallest figure we are going to see next month and I am afraid the layoffs will be done secretly. Most of [the layoffs] will occur in Jakarta, Banten and West Java,” Sofjan told The Jakarta Post on the sidelines of an Apindo National Leadership Council (DPN) gathering in Jakarta.

The affected workers mostly work in the food and beverage, tob...