Layoffs Reach 24 Thousand, Puan Asks The Government To Protect Affected Workers

JAKARTA - Chairman of the Indonesian House of Representatives, Puan Maharani, highlighted the phenomenon of increasing layoffs (PHK) in Indonesia, including from the report of the Minister of Manpower (Menaker) Yassierli. He also encouraged the Government to take a number of handling steps, including assistance programs for formal workers who switched to the informal sector after being laid off.

"It is not comparable between job opportunities and the increasing workforce, forcing workers to switch to the informal sector. The state must be present to assist its people who are struggling to survive the hardships of life, including those who are laid off," said Puan, Monday, May 5.

Puan also asked the government to provide protection for workers who choose new opportunities. Of course, apart from creating new jobs and providing social assistance (bansos).

"Don't let workers who are laid off fight alone. The state must be present to accompany the process of transitioning labor from the formal to informal sector, from wage workers to business actors and services with a real and measurable approach," he said.

As reported, Minister of Manpower Yassierli reported to Commission IX of the DPR that the number of layoffs in Indonesia for the period January to April 23, 2025 had exceeded 24,036 people. According to Yassierli, the number of layoffs in early 2025 already covers a third of the number of layoffs in 2024 or an increase compared to the same period last year.

The Ministry of Manpower noted that last year's layoffs reached 77,965 people. The three provinces with the largest layoffs were Central Java, Jakarta and Riau. Meanwhile, the sectors with the most layoffs are the manufacturing, wholesale and retail trade industries, as well as other service activities.

Puan assessed that this phenomenon is a sign that the current labor system has not been able to face the challenges of changing economic structure and digitization. According to him, the government through the relevant ministries must provide assistance to the transition of labor.

Many of our workers who are affected by layoffs then turn to become small entrepreneurs or SMEs and MSMEs. Some are included in the creative economy sector, or become service providers in various fields," said Puan.

"The government needs to provide assistance so that new opportunities for them provide positive results, and instead of adding to their slump," continued the former Coordinating Minister for Human Development and Culture.

Puan emphasized that the people's entrepreneurship empowerment program should not only stop at stagnant basic training or small capital. According to him, what people need is access to the business ecosystem which allows them to advance to class both in terms of financing, business digitization, and market expansion.

"Do not let the people be encouraged to become entrepreneurs but only produce almost subsistent businesses, with low productivity and income. It is not empowerment, but a transfer of structural responsibility," said Puan.

"A comprehensive system must be prepared, starting from assistance, access to financing, to integration with the market ecosystem," added the PDIP legislator for the Central Java V electoral district.

Puan also reminded that the solution to the phenomenon of layoffs should not be just a short term, especially in the midst of a changing economic situation. He assessed that now is the time to encourage a globally competitive model of the people's economy, regardless of the form of business chosen by the people.

"We have to make sure that layoffs are not the end, but the beginning of a new phase of the people's economy that is more advanced and dignified. This can only be achieved if the state does not let go," concluded Puan.