Anticipating An Increase In UMP 6.5 Percent, The Government Immediately Forms A Layoff Task Force

Coordinating Minister for the Economy Airlangga Hartarto answered questions from the media crew while attending the 2024 Kadin National Leadership Meeting (Rapimnas) in Jakarta, Sunday (1/12/2024). (ANTARA/Harianto)

Coordinating Minister for the Economy Airlangga Hartarto said that the government immediately formed a Job Relations Termination Task Force (Satgas LAYOFFS) after the 2025 provincial minimum wage increase policy (UMP) of 6.5 percent.

"The government will make a task force related to layoffs," said Airlangga on the sidelines of attending the 2024 Kadin National Leadership Meeting (Rapimnas) in Jakarta, Sunday (1/12).

The plan to form a layoff Task Force is the government's response to the potential layoffs taken by the company against employees or workers following the increase in the UMP.

"So what we see is the fundamentals of the industry. So later we will study it there," said Airlangga, quoted by Antara.

Even so, Airlangga did not explain in more detail when the layoffs Task Force would be formed including the elements to be involved. However, he emphasized that the government continues to encourage economic growth and reduce the number of poverty.

Previously, President Prabowo Subianto announced an increase in the average national minimum wage by 6.5 percent for 2025, based on the results of decisions through a limited meeting with related parties, Friday (29/11) afternoon.

"We have made the decision to increase the national minimum wage average by 2025 by 6.5 percent," said the President in his announcement at the Presidential Office, Presidential Palace Complex, Jakarta.

The President said the increase was slightly higher than the proposal of the Minister of Manpower, Yassierli, who previously recommended an increase of 6 percent. The decision was taken after a limited meeting that discussed the minimum wage as a social safety net for workers, especially those who worked less than 12 months.

The President explained that the final decision was taken after going through in-depth discussions, including with labor leaders. The President also emphasized that this determination aims to increase the purchasing power of workers while maintaining business competitiveness.