Chairperson of the Indonesian Employers' Association (Apindo) Shinta Widjaja Kamdani said that in 2023 the number of causes for layoffs (PHK) will increase. If in the previous year there were challenges of declining export demand, this year there are more other aspects. "At first I thought last year was enough, until the end of the year there were almost 1 million (layoffs occurred), so this year we hope it won't be too big, not as big as last year," Shinta said when met at the Ministry of Trade Office, Jakarta , Monday (10/7/2023).
But in reality, continued Shinta, now the aspects that cause layoffs are increasing, not only the decline in export demand. But this year there was also an entry of illegal goods into the country and affected the domestic market. Plus, automation also affects the Indonesian textile industry.
"The reality is that now there are many aspects, in addition to declining export demand, then there are illegal goods that enter. This is very influential. Then automation also affects our textile industry. So now it looks like it will increase," he said.
Shinta said the potential for layoffs this year could be greater than in 2022. However, Shinta's number of increases cannot be ascertained.
Impact of Layoffs Everywhere Factory to Boarding Houses Quiet. (CNBC Indonesia/Tri Susilo) Photo: Impact of Layoffs Everywhere, factories and boarding houses are quiet. (CNBC Indonesia/Tri Susilo)
Impact of Layoffs Everywhere Factory to Boarding Houses Quiet. (CNBC Indonesia/Tri Susilo)
"It's not certain (how much it will increase), it just seems that at least it will be more," he said.
Shinta admits that she still cannot confirm how much the total number of layoffs will increase this year. However, the thing that must be considered at this time is to find a way out.
"We can't (confirm) yet, I've also asked friends, I don't think there's a definite number yet. But what we have to pay attention to is the way out, can we shift to where later, if this layoff we have to prepare where the workforce will go ," he explained.
"Can you shift to another job? If you want to shift, you have to have more training, upskilling again, reskilling again," he added.
Shinta said, in an effort to shift to other jobs, MSME and entrepreneurship also need to pay attention, it needs to be seen again whether it is capable of for the future, because this is not something that is just happening right now.
"After all, in my opinion, is it possible to create jobs from SMEs and entrepreneurship? So we have to think about it in the future, because this is not something that is just happening now. We have to think about what the future will look like," he said.
