JAKARTA (TimesofIDN) – Indonesia’s labor market faced significant challenges in the first half of 2025, with layoffs surging by over 30%, particularly in Central Java. According to data from the Ministry of Manpower’s Satudata, 42,385 workers were laid off between January and June 2025, a 32.19% increase compared to 32,064 in the same period last year.
The Ministry of Manpower is currently studying the causes of the rising layoffs, focusing on the most affected regions and industries. This evaluation will guide the formulation of policies to protect workers and stimulate job creation.
As reported by CNBC Indonesia, Manpower Minister Yassierli emphasized that the government is actively monitoring layoff trends across regions.
“We conduct monthly monitoring. We have a routine reporting system managed by Barenbang Kemenaker,” Yassierli said during a visit to oversee the distribution of Wage Subsidy Assistance (BSU) in Makassar, South Sulawesi, on Saturday (26/7/2025).
Yassierli noted that the data will help map out the hardest-hit regions and industries, enabling more targeted labor policies. He also highlighted the importance of the Job Loss Guarantee (JKP) program, which provides workers with 60% of their salaries for six months, provided they are registered with BPJS Ketenagakerjaan.
“We have the JKP, so workers affected by layoffs can still receive benefits as long as they are registered with BPJS Ketenagakerjaan,” he added.
The government is intensifying efforts to address the surge in layoffs by strengthening social protections and promoting policies to support labor market stability amid growing economic challenges.
