Jakarta – The government has been advised to anticipate the possibility of further job losses in the retail industry, following the closure of 7-Eleven convenience stores and the plan of Lotus and Debenhams department stores to follow suit.
Meanwhile, Matahari department stores had also closed two of its outlets in Jakarta.
Institute for Economic and Development Finance (Indef) economist Bima Yudhistira said more layoffs are expected due to the weakening of retail businesses.
He added that in the case of the closures of 7-Eleven convenience stores, about 1,600 workers had lost their jobs. "The weakening retail businesses may be followed by mass layoffs," he told kompas.com in Jakarta on Tuesday.
He estimated that about 10,000 workers would lose their jobs. He also warned that the workers would be unemployable because of job scarcity.
Meanwhile, Indonesian Retail Business Association deputy chairman (Aprindo) Tutum Rahanta said his association had no data about the number of workers who were affected.
"We have no data yet, but because of the slow retail business, the sector would likely not recruit new workers," he added.
Previously, Indonesian Employers Association (Apindo) chairman Hariyadi Sukamdani criticized the government for its slow response to the slowdown.
"The government always denies it if there is a weakening of people purchasing power. But it also does not understand what really happened," he added. (bbn)