Mass Layoffs Widen Across Indonesia, Over 60,000 Workers Affected as of April 2025

Indonesia is currently facing a widespread wave of mass layoffs that has shaken multiple industrial sectors through April 2025. According to a report by Kompas, citing data from the Indonesian Trade Union Confederation (KSPI), more than tens of thousands of workers have been laid off within just the first two months of this year. The most affected sectors include textiles, garments, footwear, electronics, and other labor-intensive industries.

Key Drivers Behind the Mass Layoffs

Several primary factors have been identified as triggers of this wave of terminations, including:

• Textile Industry Crisis
  A decline in export demand from key trading partners such as China and the United States, combined with an influx of cheap imported products into the domestic market, has significantly weakened the competitiveness of Indonesia’s textile industry.
  
   
• Lax Import Regulations
  The implementation of Trade Minister Regulation No. 8 of 2024, which facilitates the entry of imported goods, is considered to have worsened the condition of local industries. This unbalanced competition has forced many businesses to cut costs, including through layoffs.
  
   
• Factory Closures and Relocations
  Several major companies, such as PT Yamaha Music Product Asia and PT Yamaha Indonesia, have decided to cease operations in Indonesia and relocate their production bases to other countries, resulting in large-scale job losses.

Social and Economic Impact

This wave of layoffs has not only raised concern among workers but has also led to broader social and economic consequences at the national level:

• Surge in Unemployment
  Thousands of workers have lost their livelihoods, which could potentially raise the national unemployment rate and slow down economic growth.
   
• Decline in Purchasing Power
  The loss of income has weakened consumer purchasing power, ultimately affecting other sectors such as retail and trade.
   
• Widening Social Inequality
  Mass layoffs also risk worsening social inequality and pushing more families—particularly among laborers and informal workers—into poverty.

(Sources: Katadata, Sindonews, Scope News)

Calls for Strategic Action

This situation highlights the urgent need for swift and strategic measures from both the government and industry stakeholders to mitigate further impact. The government is urged to create new job opportunities, strengthen domestic industries, and ensure the protection of workers' rights.

Import policy reforms, incentives for strategic sectors, and workforce training are considered vital components of a long-term solution to stabilize the economy and safeguard workers’ well-being.