Labour-intensive sectors such as textiles and footwear were hit by a storm of Termination of Employment (PHK). At the end of 2022 the Ombudsman reported that there were 87 thousand layoffs in the last quarter. Regarding this, the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, opened his voice. He cited the global economic turmoil as the cause. "There are several sectors reducing (employees), there are 87 thousand, there are so many. That's the problem in the global market," he said at PT HM Sampoerna in Karawang industrial City, West Java, Thursday (12/1/2023).
This data was obtained after discussions with the Indonesian Employers' Association (APINDO). According to him, demand from the global market is decreasing.
This situation has impacted the industrial sector that relies on exports. Susiwijono said this condition could not be separated from the turbulent global economy. Moreover, the World Bank has just cut its 2023 economic projection to 1.7%.
"The possibility of global growth in 2023 is predicted to fall. The World Bank's projection for 2023 will fall again, so it's around 1%. The world is all slowing down a bit, several export destination countries are experiencing a contraction, that will definitely have an effect," he said.
In addition, products for export purposes cannot simply be moved to the domestic market. He said that the needs of the domestic and global markets should not interfere with each other.
"You can't shift export products directly to the domestic market, you can't. Because the domestic market already exists itself. Don't let it interfere with each other," he said.
Because the business was hit by these conditions, the industry began to make adjustments and efficiency, one of which was by laying off workers.
However, he ensured that Indonesia's macro fundamentals in 2023 were quite strong. Therefore, the government is quite optimistic about this year.
"The problem is in the global market. But 2023 nationally, our macro fundamentals are strong. That's why we and the Coordinating Minister (Airlangga Hartarto) are optimistic about facing 2023," he concluded.
