Many Layoffs In The Manufacturing Industry, Spokesperson For The Ministry Of Industry Disbursed The Trigger

JAKARTA - The Ministry of Industry (Kemenperin) said that the trend of Termination of Work Relations (PHK) in the manufacturing industry will continue to occur.

Based on data from the Ministry of Industry, at least two million workers were laid off during the period August 2024 to February 2025.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said the cause of layoffs in the manufacturing industry was due to the impact of the import relaxation policy previously implemented by the government.

"We do not deny. We from the Ministry of Industry do not deny that layoffs still occur in the manufacturing industry," said Febri in the release of IKI July 2025 at the Ministry of Industry Building, Jakarta, Thursday, July 31.

"And once again the layoffs occur at this time, it is due to the residue of the import relaxation policy which is currently still being felt by the labor-intensive industry," he continued.

Febri also estimates that layoffs in the manufacturing industry will continue until the revision of the Regulation of the Minister of Trade (Permendag) Number 8 of 2024 is enforced

The revision of the Permendag 8/2024 is targeted to take effect around September 2025.

"We once again state that this is due to the excess of the import relaxation policy which makes the domestic market flooded with cheap imported products," said Febri.

Thus, said Febri, it causes pressure on demand in downstream industries, especially labor-intensive industries.

"In the end, it triggers a reduction in work and if you look at the figure, it's almost two million. That's the risk we bear from the implementation of the import relaxation policy," he concluded.

The Ministry of Manpower noted that the layoffs in the January-June 2025 period reached 42,385 people.

Jumlah itu meningkat 32,1 persen dibandingkan periode sama tahun lalu sebanyak 32.064 orang.

Merujuk Satu Data Kemnaker, korban PHK tertinggi sepanjang Januari-Juni 2025 terjadi di Jawa Tengah.

Menurut sektornya, kasus PHK terbanyak terjadi di sektor pengolahan yakni 22.671 orang, diikuti perdagangan besar dan eceran serta pertambangan dan penggalian.

That number increased by 32.1 percent compared to the same period last year of 32,064 people.

Referring to One Data from the Ministry of Manpower, the highest layoff victims during January-June 2025 occurred in Central Java.

According to the sector, the most cases of layoffs occurred in the processing sector, namely 22,671 people, followed by large and retail trade and mining and excavation.