Heaven's Wind In The Middle Of A Storm Of Layoffs

The government has decided to revoke the moratorium on sending Indonesian migrant workers (PMI) to Saudi Arabia in the midst of a wave of layoffs, aka layoffs that hit the world of employment in the country.

You could say, the government's decision is like a 'wind of heaven' amid the increasing unemployment rate in Indonesia. How not, there are at least 600 thousand quotas prepared with security guarantees more than the Arab kingdom and the potential for foreign exchange to enter to reach Rp31 trillion!

The Confederation of Indonesian Trade Unions in media statements on March 15 revealed that around 60,000 workers from 50 companies lost their jobs in January and February. Meanwhile, the Indonesian Employers' Association (Apindo) recorded layoffs in the early two months of 2025 reaching 40 thousand people.

Throughout 2024, the total layoffs reached 250 thousand workers. The data was obtained by Apindo from BPJS Ketenagakerjaan which disbursed old-age insurance (JHT) and guarantees for job loss (JKP).

The Research Center for the Indonesian Parliamentary Expertise Agency estimates that 280,000 workers will be laid off by 2025, making it the highest annual figure since the Covid-19 pandemic, resulting in 3.6 million people losing their jobs in 2020.

Still warm in public memory, after Sritex fired 12 thousand of its employees because of debt bondage, PT Yamaha Music Indonesia followed by dismissing 1,100 of its workers due to factory closures. Yamaha Music closed two piano factories in the Jakarta and Bekasi areas. Not finished yet, news of layoffs broke again from the Sanken factory which fired at least 400 workers starting June 2025. Last year, Sanken, located in the MM2100 Cibitung Industrial Estate, Bekasi, had laid off 500 workers. PT Tokai Kagu, PT Danbi Internasional Garut, and PT Bapintri also contributed layoffs with a range of 3,200 workers.

From the large number of layoffs and continues to grow, it could open the tap for sending PMIs to Saudi Arabia, which is an instant solution. Calculatedly, when compared, the number of layoffs that hit a number of companies is around 14,000 workers, it can still be closed with 600 thousand quotas of migrant workers who will be sent back to Saudi Arabia after the moratorium is lifted.

Minister of Protection of Indonesian Migrant Workers (P2MI) Abdul Kadir Karding. (doc KemenP2MI)

"It's okay"

"It's okay"

"It's okay"

"It's okay"

Hope Under The New King

The Minister of Migrant Workers Protection, Abdul Kadir Karding admitted, the government will revoke the moratorium on sending PMIs to Saudi Arabia this year along with claims that Saudi Arabia has opened quotas for 600,000 Indonesian workers, consisting of 400,000 in the domestic sector, as household workers and 200,000 others for formal workers with salary guarantees of more than IDR 6.5 million for each worker.

He revealed, if everything goes well, PMI delivery will begin in June. The Indonesian government also hopes that through the revocation of the PMI delivery moratorium, it can reap retention (transmitting money from PMI into the country) amounting to Rp31 trillion.

"Under the new king, their protection is better. They are more advanced. They, for example, guarantee salaries at 1,500 riyals or equivalent to Rp6,538,500. There is protection in the context of health, life and labor insurance. What's interesting is that every time the contract is completed for two years, Indonesians are given a bonus once for Umrah, "explained Karding.

He also ensured the readiness of an application called the Computerization System for the Placement and Protection Service of Indonesian Migrant Workers (SISKOP2MI) for people interested in becoming migrant workers launched since 2022. As is known, the system was developed by the Indonesian Migrant Workers Protection Agency (BP2MI) which transformed into the Indonesian Migrant Workers Protection Ministry under the new government of President Prabowo Subianto.

This system integrates access to job vacancies, registration and selection, to protection for prospective migrant workers. According to Karding, this system will be integrated with Musaned services belonging to the Ministry of Human Resources and Human Development of Saudi Arabia launched in 2016 to bring together worker seekers with companies or individuals who need workers.

There are 25,000 migrant workers every year who enter unprocedurally into Saudi Arabia after the moratorium was implemented in 2015. To prevent this, general governance improvements in data integration have been made. Employers who want to take workers must register on the Musaned. They must have a deposit for their salaries, "explained Karding.

Reported by Saudi media Gazzzette, in early March 2025, the Musaned platform has listed 852,660 new contracts and 1,214,259 CV workers. The number of interacting business entities on this platform has reached 4,048,420 users. The platform also allows domestic workers to change employers without prior employers' consent. In 2021, Saudi Arabia introduced labor reforms that relaxes restrictions for migrant workers and allows workers to change jobs without the consent of previous employers.

Big Challenges

Deputy Chairman of Commission IX DPR RI Nihayatul Wafiroh at Solo City Hall, Central Java, Thursday (5/9/2024). Photo: Rizki/ https://emedia.dpr.go.id/

"It's okay"

"It's okay"

"It's okay"

"It's okay"

Member of Commission IX DPR RI, Nurhadi assessed that the revocation of the PMI moratorium to Saudi Arabia would not cause problems during the selection to be carried out strictly. But on the other hand, the government must also think about creating jobs in the country, as a symbol of investment. When a wave of mass layoffs occurs domestically, this can be seen as an indication that job creation in the country is still a big challenge," he added.

Ideally, continued the politician from the NasDem Party faction, the employment policy must focus on two things at once, namely opening access for those who want to work abroad with maximum protection and strengthening domestic industries and investment in order to be able to absorb more labor.

"If you only rely on sending workers abroad without being balanced with real efforts to create domestic jobs, of course this policy can be seen as a shortcut," said Nurhadi.

Another member of Commission IX of the DPR RI, Ashabul Kahfi, revealed that the revocation of the moratorium on sending PMI could indeed open up opportunities for workers who are interested and have appropriate skills. The reason is, during the moratorium, many Indonesian workers have lost the opportunity to work legally abroad.

However, the most important thing is that the government must be able to ensure that the rights and protection of these PMIs are absolutely guaranteed, both when they are in a destination country and after returning to their homeland. I understand public concerns regarding the issue of mass layoffs in the country. I agree that the government must prioritize strategic steps to create jobs in the country," he said.

This politician from the PAN faction emphasized that the policy of sending PMI should not be a short-term solution, but must be accompanied by serious efforts to develop the industrial sector, MSMEs, modern agriculture, and economic digitization so that job opportunities in Indonesia are wider. "The government must also ensure that PMI departing is a workforce that has expertise and gets adequate training in order to compete in the international work market," added Kahfi.

"Commission IX of the DPR RI also requested that the policy of revoking this moratorium not only be rate-oriented, but must be based on labor protection and improving the quality of their lives," he continued.

Member of Commission IX DPR RI Arzeti Bilbina requested that the revocation of the moratorium on sending PMIs to Saudi Arabia not cover the entire sector. According to him, the government should maintain a moratorium on sending PMIs to the domestic sector or household workers.

Although there has been an evaluation of the One Canal Placement System (SPSK) which is claimed to be safer, he reminded that the settlement of cases of violation related to PMI must remain a concern and should not be ignored. He emphasized that although there is potential economic benefits from placing PMI abroad, PMI safety is more important.