The Indonesian Employers Association or Apindo says there are three types of industries that will do this layoffs or mass layoffs in 2023. This is due to a significant decrease in demand from the industrial market.
Apindo Vice President Shinta Widjaja Kamdani said the three industries that will carry out the mass layoffs are the textile, footwear and furniture industries. All three are labour-intensive export-oriented sectors.
“There will definitely be layoffs next year, not again,” Shinta said Katadata.co.id when meeting at the Apindo office, Jakarta on Wednesday (21/12).
The wave of layoffs increases
Shinta said the three industries began laying off workers this year. BPJS Ketenagakerjaan noted that there were layoffs of 919,071 workers who disbursed Old Age Security or JHT funds due to layoffs from January to November 1, 2022.
However, according to Shinta, the wave of layoffs will be even greater next year. This is because the demand for a number of export goods will decline in 2023.
Based on Apindo’s records, the labour-intensive industries such as Textiles & Textiles or TPT & Footwear are facing declining global market demand since the start of Semester II-2022. Demand comes in particular from developed countries.
“In the textile and footwear industry, there has been a 30-50% drop in orders with delivery at the end of 2022 through Q1 2023,” he said.
Therefore, these conditions have forced companies in the sector to significantly reduce production and lead to reductions in working hours and layoffs.
According to data from the Ministry of Labour, around 10,000 people (PHK) were made redundant in the period January-September 2022 in Indonesia.
In this period, the largest number of layoffs occurred in Banten, with a total of 3.7 thousand layoffs. In the next sequence are DKI Jakarta, East Java, South Kalimantan and Riau Islands with details as shown in the graph.
