Termination of employment (PHK) in labor-intensive industries has been getting worse lately. This condition cannot be separated from the decline in export demand, which has fallen for export-oriented RI products. Entrepreneurs also warned that the domestic market could be secured. "We believe that when there is a product war at home from abroad, it must be anticipated, so that national consumption is empowered by government stimulus. So all domestic products don't have to be export-oriented, purchasing power must be boosted first," Deputy Chairperson of Kadin Indonesia's Employment Sector Adi Mahfudz, Monday (23/1/2023).
Because of this, the condition of the national economy and its purchasing power must be boosted first, both from the middle class, including most of the lower middle class. In addition, business actors also need incentives for business continuity.
"For example, the ease of the post-Covid-19 stimulus. There is a concern that you will not be able to pay either in working capital loans. Then the incentives for PPh and VAT taxes are made easier, it is very unlikely that the government will warn against layoffs if the stimulus is not fully encouraged," said Adi.
Layoffs often occur in labor-intensive industries. The Indonesian Textile Association (API) noted that 97 textile and textile product (TPT) factories carried out layoffs (PHK) of around 30,000 workers. This figure is based on reports submitted to the API as of November 21, 2022.
"Based on the results of reports from members who entered, API alone, there were a total of 30,166 employees affected by layoffs," said BPP API Head of Employment and HR Development Nurdin Setiawan.
If there is no significant policy improvement, the number of layoff cases could become a time bomb, getting bigger day by day. The estimated number will reach half a million people in early 2023.
"(Currently) Not yet 500 thousand, this is potential in Q1 if there are no significant steps," said General Chairperson of the Association of Indonesian Settlement and Filament Yarn Producers (APSyFI) Redma Gita Wirawasta.
