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Indonesian minister links 79,000 layoffs in 2025 to slow economy

Source
Tempo - December 24, 2025

Anastasya Lavenia Yudi, Jakarta – The Indonesian Minister of Finance Purbaya Yudhi Sadewa responded to the 79,000 job terminations in 2025. According to Purbaya, the high number of job terminations indicates an economic slowdown.

"Job terminations happen when the demand is very weak. It happened in the first ten months, the first nine months of the previous year were also bad. This year, the first ten months were slow," said Purbaya at the Ministry of Finance office in Jakarta on Tuesday, December 23, 2025. However, he believes that the condition will improve next year.

According to Purbaya, the economy will improve next year because there has been alignment between government policies and Bank Indonesia's policies. He assessed that access to working capital financing also affects the job market conditions.

"When the demand rises, if they don't have access to working capital, they cannot grow. That's why I am concerned about it and want to help them as much as possible," said Purbaya. Based on this, he said, the government is making changes to both fiscal and monetary policies.

The Ministry of Manpower recorded that from January to November 2025, the number of workers who experienced job terminations reached 79,302 cases. This number is based on the labor force classified as participants of the Job Loss Guarantee Program (JKP).

Based on the Manpower Ministry's One Data, the highest number of layoffs is in West Java, accounting for about 21.73 percent of the total workforce affected by job terminations.

Source: https://en.tempo.co/read/2075739/indonesian-minister-links-79000-layoffs-in-2025-to-slow-econom

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