Layoff Concerns Mount as Indonesia Faces Potential Impact on 19 Million Jobs
Jakarta, Indonesia – september 6, 2025 – Recent mass layoffs, including those at PT Gudang Garam and PT SBJ Lebak, are sparking widespread concern over the future of employment in Indonesia, wiht one estimate suggesting as many as 19 million jobs could be affected. The anxieties were voiced on social media, with user @yusufmuhammad posting Saturday, “It’s sad to see the mass layoff of PT Gudang Garam employees. The world of work is not good.”
The potential impact extends far beyond individual workers, raising fears for the stability of families and the broader Indonesian economy. the layoffs at PT Gudang Garam, a major Indonesian cigarette manufacturer, have drawn particular attention. Simultaneously, workers from PT SBJ Lebak, impacted by similar workforce reductions, have reportedly turned to illegal gold mining as a means of survival. This situation underscores the desperation faced by those suddenly unemployed and the limited alternative opportunities available.
Indonesia’s labor market has faced headwinds in recent years, navigating global economic uncertainty and domestic challenges. The government has previously stated a goal of creating 19 million new jobs, but recent events cast doubt on the feasibility of achieving this target. @yusufmuhammad further emphasized the human cost, stating, “Indeed behind those who are laid off there are families, children and wives. Hopefully there is the best solution from the government. 19 million jobs are you?”
The situation is prompting calls for increased government intervention and support for affected workers, as well as a reevaluation of strategies to stimulate job creation and economic growth. The unfolding events are being closely monitored for their potential to trigger wider economic repercussions.
