Nearly 60 Thousand Workers Have Been LAID Off In 2024, Deputy Head Of DPR: Policy Must Make Everyone Happy

JAKARTA - From the beginning of 2024 to last October, there have been nearly 60 thousand people affected by the Termination of Work Relations (PHK). Deputy Speaker of the Indonesian House of Representatives Cucun Ahmad Syamsurijal emphasized the need for regulations that win-win Solution for all parties.

"60 thousand is not a small number. This is really concerning. So I think what needs to be improved is the system or regulations. It must be clear, and mutually beneficial for all parties. Moreover, we are in the midst of a wave of layoffs, we must really win-win solutions," said Cucun, Tuesday, November 5.

According to him, the situation of the layoff storm experienced by Indonesia should be a warning for all policy makers to evaluate and immediately carry out improvements. Cucun said that the government, in this case the Ministry of Manpower, must encourage each region to build an early warning system against potential layoffs in companies.

"And this needs to be accompanied by effective policy making. Including the UMP (Provincial Minimum Wage) must be formulated fairly to minimize the storm of layoffs," he said.

Cucun reminded, it is also important that the regulatory system is not one-sided. This means that all must be based on the principle of justice for all stakeholders.

"For example, if the economic growth rate is added to inflation or what the components must really be in favor of the community. And still pay attention to how entrepreneurs progress, the workers are also prosperous," explained Cucun.

"So everyone must be happy when the regulator makes a revision when wages rise, they must also intersect with high productivity," added the legislator from the West Java II electoral district.

Cucun, who was also the head of the DPR's budget body (Banggar), gave an illustration of how entrepreneurs actually don't mind if there is a UMP increase policy for workers. During the regulations made by the Government, it also supports business progress.

"Entrepreneurs are also happy as long as all of this is based on regulations and is calculated properly, so the state can also be present there, how to become a fair supervisor and regulator," explained Cucun.

"If wages go up, the workforce is motivated and the work ethic increases, so everything goes hand in hand. It's just a matter of how to sit with him, deliberation is followed by all stakeholders in the employment sector," he added.

Data from the Ministry of Manpower noted that the number of layoffs in Indonesia reached 59,796 people from January to October 2024. For October alone, there were an additional 6,800 workers who were laid off considering that a total of 52,993 people were laid off in September.

The province with the most layoffs, namely in DKI Jakarta, reached 14,501 people, where the figure rose 94% compared to September. Meanwhile, the laid-off workforce in Central Java decreased 23.8% on a monthly basis to 11,252 people. And the third rank, the province that experienced layoffs was Banten with an increase of 15.47% on a monthly basis to 10,524 people.

"For example, if the current UMP is not balanced in each region, the workers will definitely compare it with other regions. If there is an increase in one area, it will definitely take to the streets, that's what we should avoid. Build a good system," explained Cucun.

Although the early warning system conveyed by the Government is a good step, Cucun emphasized that it can be effective if it is designed with accurate data, sustainable monitoring, and integrated with a fast and adaptive policy response.

"This system cannot stand alone. There must be coordination with other policies, such as financial support and retraining, to really reduce the number of layoffs," he said.

Cucun assessed that basically the problem of layoffs could be resolved if the decision was based on the principle of justice. Its implementation must also benefit all parties.

"You have to be wise in making decisions because this concerns the fate of millions of our workers," said Cucun.

The chairman of the DPR, the coordinator of the community welfare sector (Kesra), also hopes that the latest Constitutional Court (MK) decision regarding the Job Creation Law (Ciptaker) can make the employment and business climate healthier. Cucun assessed that entrepreneurs are basically ready to cooperate with the State as long as policies continue to support industrial development.

There must be a system that is automatically acceptable to all parties. Workers are okay, entrepreneurs also don't mind because they feel protected," he said.

"If the regulations are clear, entrepreneurs are also safe. When the industry is running well, the work of workers is not threatened and economic growth will also increase," continued Cucun.

Cucun also reminded every ministry/institution to make policies that do not violate the rules or violate the law.

"Don't make a decision that is made by new norms, you must continue to stand by the law," he said.

On the other hand, the Government is also asked to improve social protection policies. This is to support workers who are laid off.

"Make sure the Job Loss Guarantee (JKP) program is effective and easily accessible to workers who have lost their jobs. And there must be strengthening of social networks such as providing better access to health services, education, and psychological support for workers' families affected by layoffs," concluded Cucun.