Indonesia Faces Soaring Layoffs, Exceeding Official Figures

Employers Warn of Continued Job Cuts Amidst Global Trade Headwinds

Jakarta, Indonesia – A stark increase in job terminations is significantly impacting Indonesia’s workforce, with the employers’ association reporting numbers nearly four times higher than official government data. The trend points to growing economic pressures affecting businesses across the nation.

Employers Association Highlights Alarming Layoff Data

According to **Shinta Kamdani**, Chairperson of the Indonesian Employers’ Association (Apindo), roughly 150,000 individuals faced termination of employment (PHK) between January and June 2025. Out of this substantial figure, **Shinta** noted that 100,000 have initiated benefit claims through BPJS Employment.

She elaborated on Apindo’s reliance on BPJS Employment data, stating, If we are in Apindo, we use the layoff data from the BPJS Employment, so we see those who come out of the BPJS, the layoffs until January to June 2025 are already 150 thousand. And the claims are 100 thousand.

Government Figures Contrast with Employer Reports

This alarming figure starkly contrasts with the Ministry of Manpower’s (Kemnaker) report, which documented 42,385 workers affected by layoffs during the same January to June period. This represents a 32.19% increase compared to the 32,064 workers laid off in the first half of the previous year.

**Shinta Kamdani** acknowledged the discrepancy but emphasized the undeniable trend of rising job losses. But of course we also see that in the Ministry of Manpower has a report from the Manpower Office and others. So that’s why I say we don’t have to argue about numbers, data. But clearly it seems that the increase was there, the government said 32%. That was a high number, high increase. And this was already felt also from the survey made by Apindo.

The Indonesian economy has seen a 0.5% increase in its unemployment rate in the first quarter of 2025, reaching 5.1% of the total workforce, according to Statistics Indonesia (BPS) (BPS February 2025).

Concerns Mount Over Export Industry and Tariffs

**Shinta** anticipates a continuation of layoff waves, partly due to potential trade disruptions. She specifically cited a hypothetical 19% tariff from the United States as a threat to export-oriented industries, particularly textiles and textile products (TPT).

So we both agree that this is not just ordinary layoffs, but this layoff is really running and is still rolling. So in terms of Trump tariffs and others it should not be increased again. Because the exports are hit there TPT (textiles and textile products), she stated.

She warned that if Indonesia faces unfavorable trade terms compared to competitors, resulting in order diversions, the domestic workforce will suffer, leading to further job cuts.