Kadin The Value Of Labor Intensive Sector Layoffs Due To The Impact Of Global Geopolitical Conditions

Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development Sarman Simanjorang. (Photo: Doc. Antara)

BALI - Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Regional Autonomy Development, Sarman Simanjorang, assessed that layoffs (PHK) occurred in labor-intensive industries as a result of global geopolitical conditions.

Geopolitical conditions in question of tensions between China and Taiwan and European countries that are facing a crisis due to the Russian-Ukraine war.

"The labor-intensive sector really depends on 100 percent of buyers from abroad, because there are no buyers, it's finished, there's no them, it's not working," said Sarman, quoted from Antara, Tuesday, November 15.

According to Sarman, both China and Taiwan are Indonesia's main trading partners.

If the two of them argue, it will certainly disrupt Indonesia's exports and imports.

The same thing applies to European countries.

"Why is our economic growth good but the fact is that there are many layoffs, because our labor-intensive sectors cannot order European countries, because they are still in crisis," he said.

Sarman also hopes that geopolitical tensions among world countries can loosen and not continue.

"We pray together that hopefully it will not continue (China-Taiwan tension), the Russia-Ukraine war will also not continue. And in 2023, hopefully, our political stability will not be noisy so as not to reduce investors' intention to enter Indonesia," said Sarman.

Investment Minister Bahlil Lahadalia previously said that global economic conditions were not doing well, especially after the arrival of the COVID-19 pandemic to the war between Russia and Ukraine.

Indonesia itself, according to him, has received an initial blow since the trade war between China and the United States.

"Uncertain geopolitical conditions are exacerbating global economic conditions. What we have to worry about now is geopolitical tensions between China and Taiwan," he said.

Bahlil also said that the conditions that exist globally create uncertainty and anxiety which eventually makes many predictions about the dark economy.