Heads Up: 60 Companies Could Soon Announce Mass Layoffs, warns Indonesia‘s Deputy Minister of Manpower
In a sobering revelation, Indonesia’s Deputy Minister of Manpower, Immanuel Ebenezer (commonly known as Noel), has warned of a potential impending wave of mass layoffs, deals that could send ripples of concern through the business world. In a candid conversation following a press conference at the Ministry of Manpower headquarters, he disclosed that approximately 60 companies are considering cuts in the near future. "Just yesterday, I had a discussion with some of my associates, and there are around 60 companies that plan to implement layoffs. Isn’t that alarming?" Noel expressed his concern.
Noel’s hunch is backed by reports he has received from various sources, including business owners and labor unions, highlighting that recent threats of layoffs have been on the rise due to the new regulations set forth by the Minister of Trade’s Decree No. 8/2024, which eases import tariffs for raw materials.
Many business owners have been critical of this regulation, blaming it for the recent downturn in domestic industries, particularly in relaxing import permitting procedures for raw materials. "I hear a lot of complaints, and the main source of the problem seems to be the Minister of Trade Regulation No. 8/2024, which eases the import of raw materials," Noel said.
He stressed that these grievances shouldn’t be overlooked and expressed hope that the relevant authorities would take note. "I hope that what I’m sharing here will be heard by the relevant institutions that issued this regulation," Noel said.
Noel called upon the Ministry of Trade, which issued the regulation in question, to assess its impact on the employment sector. He also encouraged all parties involved to collaborate in finding effective solutions to mitigate large-scale layoffs.
As of the end of 2024, around 80,000 workers have already fallen victim to layoffs since the beginning of 2023.
- idle machinery in an idle factory in Bogor, West Java (Image: CNBC Indonesia/Muhammad Sabki)*
Noel emphasized that these recent developments should serve as a wake-up call for all parties involved to work together to find effective solutions and ensure that mass layoffs do not become an inevitable trend.
(Source: Jakarta, CNBC Indonesia, Editor: Muhammad Farhan, 23 December 2024)
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