Bambang Ismoyo, Jakarta – Confederation of Indonesian Trade Unions (KSPSI) has warned of a looming wave of layoffs across the manufacturing sector, particularly in the ceramic industry, as manufacturers struggle with industrial gas supply and pricing issues.
The warning comes amid mounting concerns over natural gas availability and costs in the ceramic sector. In March, the Indonesian Ceramic Industry Association (ASAKI) said manufacturers were grappling with gas supply disruptions, rising energy costs, and growing import pressure, which pushed production utilization to around 70-72%, below the industry's 80% target.
The industry has previously linked gas supply disruptions to job losses. Last year, ASAKI reported that two tableware factories in Tangerang had laid off around 700 workers after gas shortages disrupted operations.
KSPSI President Andi Gani Nena Wea said several ceramic manufacturers are under severe pressure, with two major factories in Bekasi facing the risk of closure.
"We are facing extraordinary difficulties. Two of the largest factories whose workers are members of our union in Bekasi are at risk of shutting down. This is because of industrial gas. This is very dangerous," Andi Gani said during the National Working Meeting of the Confederation of Indonesian Trade Unions in Jakarta on Tuesday.
He warned that the industrial gas issue could trigger a new wave of layoffs in the near term if left unresolved.
According to Andi Gani, the situation is particularly alarming because manufacturing remains one of Indonesia's largest sources of employment. He urged the government and the House of Representatives to immediately address industrial gas supply and pricing problems.
KSPSI also called on the government to take concrete measures to stabilize industrial gas prices and ensure adequate supply in order to prevent mass layoffs and maintain the competitiveness of domestic industries.
"It is certain that by next week, or within the next 10 days at most, 55,000 workers will be at risk of losing their jobs. This is a concern for all of us because of industrial gas," he said.
Source: https://jakartaglobe.id/business/ceramic-industry-troubles-put-55000-jobs-on-the-lin