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Politician warns of social turmoil caused by mass layoffs

Tempo - January 18, 2023

M Julnis Firmansyah, Ade Ridwan Y, Jakarta – The chairperson of the National Awakening Party (PKB), Muhaimin Iskandar, known by his nickname Cak Imin, on Tuesday urged the government to prepare policies to overcome possible social turmoil that sparked by the soaring unemployment rate in the face of potential recession-driven layoffs in 2023.

According to information he received, he claims there will be 100 corporations based in West Java that will lay off their workers due to this economic condition. The House deputy speaker believes this number will grow larger as the footwear, furniture, and textile industries will likely be hit hard.

"Indonesia is currently in a worrying situation regarding social issues. This aligns with the possible wave of layoffs," said Cak Imin on January 17.

One example he said may be facing challenges from the predicted recession is PT Nikomas Gemilang. The largest shoe manufacturer, which relies on exports to America and Europe, experienced a 50 percent decline in orders which triggered the company to offer 1,600 of its employees resignation offers.

According to Muhaimin, the high unemployment rate will lead to a plethora of social problems in society, such as economically-driven crimes. "Economy is very susceptible to the increase in crimes. Social unrest is feared to happen when the unemployment rate grows," he elaborated.

Source: https://en.tempo.co/read/1680893/politician-warns-of-social-turmoil-caused-by-mass-layoff