The storm of layoffs (PHK) in various industries in the country continues to trigger fears of stagflation approaching Indonesia. This wave of mass layoffs started with a decline in demand in the export market, even up to 50%. This condition was triggered by the economic slowdown in export destination countries. Coupled with hyperinflation in winter, which forces consumers in these countries to prioritize buying food and energy. The number of layoffs in the labor-intensive sector has reportedly reached more than 70 thousand people at this time. Starting from being laid off, until contract employees no longer have their contract periods extended, as well as permanent employee layoffs.
The following is a list of companies in Indonesia that have made layoffs this year:
Textile Factory in Subang
Cases of termination of employment (PHK) in West Java are reported to still occur. Apart from Bogor and Sukabumi districts, mass layoffs also occurred in Subang district.
It was recorded that in Subang there were 14,029 people from 10 companies who had to lose their jobs.
This figure is data from the West Java Indonesian Employers' Association (Apindo) as of October 21, 2022. It is stated that this number could have grown even bigger.
In addition to layoffs, the West Java Indonesian Employers' Association (Apindo) noted that there had been 3,916 cases of disbursement of the Employment BPJS Old Age Benefit (JHT) at the Otto Iskandar Dinata branch, Subang. With a paid value of IDR 32,904,758,950 for the January-September 2022 period.
19 Thousand Sukabumi Textile Workers
Reports on employee efficiency up to termination of employment (PHK) are still ongoing. One of the areas in West Java, with the highest rate of reduction or layoffs is Sukabumi district.
Data from the West Java Indonesian Employers' Association (Apindo) show that the number of employee reductions reached 19,066 people from 30 companies.
"It's getting bigger and bigger in January," said Spokesperson for the West Java Textile Product Entrepreneurs Association (PPPTJB) Sariat Arifia, Wednesday (9/11/2022).
Garment Factory
Better Work Indonesia (BWI) stated that based on informal information from 218 factories under the auspices of the ILO-BWI program, 11 factories in West Java have been affected by this uncertainty.
"The effect of reduced production is still uncertain. From informal data collected from 218 factories, a total of 61 factories have been affected by this condition. These factories are located in 4 provinces, namely Central Java, West Java, Jakarta and Yogyakarta," said a statement ILO-, quoted Thursday (10/11/2022).
"11 of these affected factories are located in West Java," according to ILO-BWI data.
It was stated that more than 1,464 permanent workers in factories assisted by BWI lost their jobs.
"About 17,844 non-permanent workers were reported to have no longer had their contracts extended," said the ILO-BWI.
Government Records
Meanwhile, the Minister of Manpower (Menaker) Ida Fauziah said, cases of layoffs in Indonesia throughout 2021 reached 127,085 people, a significant decrease compared to 2020 which reached 386,877 people. And, in 2019 there were 18,911 people affected by layoffs.
"Throughout January-September 2022, the number of layoff cases was recorded at 10,765 people," said the Minister of Manpower during a meeting with Commission IX of the DPR, quoted on Thursday (10/11/2022).
Responding to the data from the Ministry of Manpower, Chairperson of the Indonesian Filament Fiber and Yarn Association (APSyFI) Redma Gita Wirawasta said that the data mentioned by the Minister of Manpower were only for permanent workers.
Meanwhile, there are many non-permanent workers who are victims of layoffs.
"The 10,000 (Ministry of Manpower data) terminated permanent employees. Many contract employees have had their contracts terminated, this does not include the Layoffs data of the Ministry of Manpower (Ministry of Manpower)," said Redma.
