Labor Party Records 70,000 Indonesian Workers Laid Off in 2025, Disputes Government Data

TEMPO.CO, Jakarta - Indonesia's Labor Party and the Coalition of Labor Unions (KSP-PB) have reported a surge in mass layoffs in Indonesia, with 70,000 workers dismissed since the start of 2025. Labor Party President Said Iqbal stated that these job losses occurred within just the first four months of the year.

Among the most recent cases is PT Maruwa Indonesia, a manufacturing firm operating since 1999, which abruptly shut down its operations in early April 2025 at the Bintang Industri II Industrial Area in Tanjung Uncang, Batuaji.

The closure resulted in 205 workers—49 permanent and 156 contract employees, being laid off without clear information regarding severance pay.

According to data compiled by the Labor Party’s research division and KSP-PB, 60,000 workers were affected by layoffs in 40 companies between January and March 2025.

“However, within just one month afterwards, this number has soared,” Said Iqbal noted in a written statement on Tuesday, May 27, 2025.

By April 2025, that figure had risen to 70,000 workers laid off by 80 companies—doubling the number of affected businesses in just one month. Said emphasized the growing urgency of the issue and criticized the Ministry of Manpower for publishing significantly lower figures.

He highlighted a discrepancy in data presented by Minister of Manpower Yassierli during a hearing with the House of Representatives Commission IX. The Minister reported only 26,000 layoffs from January to April 2025.

“This statement contradicts the available data,” said Iqbal.

To support his claim, Said pointed to three indicators. First, the Central Statistics Agency (BPS) recorded an increase of 80,000 in the number of unemployed, defined as individuals working less than one hour per week. Said asserted that this rise reflects widespread layoffs.

Second, data from the Indonesian Employers' Association (Apindo) and the Workers Social Security Agency (BPJS Ketenagakerjaan) revealed that 73,000 individuals withdrew their Old-Age Security (JHT) funds during the same period.

“The main requirement for withdrawing JHT is the status of layoffs,” he said.

Third, BPJS Ketenagakerjaan reported that 52,000 workers had received Job Loss Guarantee (JKP) assistance from January to April 2025, another indication of widespread job cuts, as JKP is only available to workers who have been laid off.

“Why does the Ministry of Manpower data only show 26,000? This is clearly manipulative, as if wanting to polish the image in front of the President. This is not just false data, but has the potential for public deception,” Said Iqbal said.

He urged the government to immediately establish a National Layoff Task Force to gather reliable data, assess the causes of layoffs, and formulate effective policies to protect workers and their families.

In response to the ongoing layoffs and the alleged misinformation by the government, the Indonesian Trade Union Confederation (KSPI) and KSP-PB plan to launch mass protests nationwide. A large-scale national demonstration is scheduled for June 10, 2025, to take place simultaneously in more than 300 cities and districts across the country.

“In Jakarta, the action will be centered in front of the House of Representatives and the State Palace, demanding justice for workers and a total reform of the national labor system,” said Said Iqbal.

Meanwhile, Minister Yassierli maintains that from January to April 23, 2025, 24,036 workers had been laid off. He noted that the highest numbers were reported in Central Java (10,692), DKI Jakarta (4,649), and Riau (3,546). The manufacturing sector was the hardest hit with 16,801 job cuts, followed by wholesale and retail trade (3,622), and other services (2,012).

Apindo’s own data recorded 40,000 layoffs, while KSPI reported around 23,000 of its members had been affected during the same period. Apindo also projected that total layoffs could reach 70,000 by the end of 2025, a number that aligns with Ministry of Manpower data from 2024, which recorded 77,965 job loss cases.

Melynda Dwi Puspita and Sukma Kanthi Nurani contributed to the writing of this article.

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