Government Reveals the Reason for Layoffs No Longer One Pattern, From World Prices to Internal Conflicts

JAKARTA - The government assesses that the wave of layoffs or layoffs is no longer triggered by one issue. The causes are now increasingly diverse, ranging from global economic turmoil, disruption of raw material supply, banking problems, to conflicts within the company.

The Minister of State Secretary Prasetyo Hadi said that this condition was the reason for the government to form the PHK Mitigation Task Force so that every problem could be mapped based on its root cause, not solved with the same approach.

According to Prasetyo, the government does not see a tendency for layoffs only to occur in certain sectors. Almost every case has a different character.

"Some of them have decreased demand. Some have problems because the company's capital is stored in banking institutions that have problems. In fact, the company itself is actually healthy," he said at the Parliament Complex, Jakarta, Friday, June 26.

He admitted that the potential for layoffs had indeed increased in companies that depended on raw material supplies. This condition is influenced by fluctuations in world commodity prices and geopolitical developments.

However, domestic factors also play a role. One example is the disruption of industrial gas supply which only occurs in certain areas.

Prasetyo explained that gas supplies in some areas of West Java had experienced technical problems, while industries in East Java and Central Java were relatively unaffected because they obtained supplies from different sources.

Therefore, the government chose to map each case in detail before determining the solution.

In addition to forming the PHK Mitigation Task Force, the government also coordinates with the Industrialization and Industrialization Task Force, the Ministry of Industry, and the Ministry of Trade.

The coordination is directed to identify commodities and raw materials that are still dependent on imports so that this dependence can be gradually reduced.

According to Prasetyo, the stronger the supply of raw materials from within the country, the smaller the risk of the industry being disrupted when there is a global market turmoil.