Ilham Oktafian, Jakarta – Indonesia has established a task force to prevent mass layoffs after labor unions warned that as many as 150,000 jobs could be at risk across several industries, including around 55,000 workers in the ceramic sector.
State Secretary Prasetyo Hadi, who was appointed head of the Layoff Mitigation Task Force, said the government, parliament, and labor unions agreed on Friday to map companies facing financial difficulties and develop measures to prevent job cuts.
"We are identifying which companies face problems and what those problems are so that mitigation measures can be taken," Prasetyo told reporters after a meeting with lawmakers and labor representatives.
The task force will involve the Manpower Ministry, parliament, labor unions, and the National Police's labor desk to monitor companies at risk of downsizing and coordinate intervention efforts.
Deputy House Speaker Sufmi Dasco Ahmad said the government and parliament would hold regular meetings to anticipate potential layoffs and address labor disputes.
The move comes amid growing concerns over weakening industrial activity and supply constraints affecting several sectors. Labor unions have warned that two major ceramic factories in Bekasi could shut down, potentially affecting 55,000 workers, partly due to shortages of industrial gas supplies.
Prasetyo said the causes of layoffs vary widely and are not concentrated in a single sector. Some companies face declining demand, while others have encountered financing difficulties, including issues with troubled banking institutions.
"Some companies are fundamentally healthy but face difficulties because their funds are tied up in financial institutions experiencing problems," he said.
The task force will also focus on companies that have already laid off workers but have yet to fulfill their obligations to employees.
The Manpower Ministry reported that 23,470 workers lost their jobs between January and May this year.
Separately, about 4,000 workers at footwear manufacturer Feng Tay Indonesia Enterprises in West Java, a supplier to Nike and Puma, have been placed on leave while the company awaits new orders, raising concerns about possible future layoffs.
The government also sought to ease concerns over reports that two automotive component manufacturers in East Java planned to relocate production to Vietnam. Prasetyo said the relocation plans had been suspended following government intervention.
Earlier this week, the Industry Ministry said there were no plans by JAI and SAI to move their production facilities to Vietnam and confirmed that neither company had carried out layoffs.
Source: https://jakartaglobe.id/business/indonesia-forms-layoff-task-force-as-150000-jobs-face-ris