Badai PHK Melanda Indonesia, DPR Desak Pemerintah Berikan 'Win-Win Solustion'

Photo by Rendy Novantino on Unsplash

JAKARTA - Indonesia has been hit by a storm of layoffs due to the slowdown in the growth rate of the textile and clothing industry. The DPR urges the Government to immediately provide the best solution for workers who have lost their jobs.

"This condition is very concerning, the impact of the unstable Indonesian economy has made people lose their livelihoods. This can increase the unemployment rate. The government must immediately provide the best solution," said Commission IX Member Rahmad Handoyo, Wednesday, August 15.

Rahmad assessed that one of the causes of this layoff storm was due to an unfavorable investment climate. So the company has to move business locations, which results in a large number of workers being laid off.

"We must also maintain the investment climate properly, meaning that the industrial relationship between workers and industry and entrepreneurs must also run harmoniously, because one of the causes of layoffs is the relocation of factories from Jabodetabek to outside the province or Jabodetabek," he explained.

Rahmad said maintaining an investment climate between industry players and workers could be a solution that benefits all parties. He said that this effort must also be mediated by the Government.

"We maintain a harmonious relationship between workers and industry so that solutions to problems do not have to be laid off, do not have to be at the factory allocation or move places that can cause layoffs," explained Rahmad.

"The government, especially the Ministry of Manpower (Kemenaker) must be a mediator so as to create a win-win solution," continued the legislator from the Central Java V electoral district.

Rahmad also assessed that the Government needs to consider providing fiscal and non-fiscal incentives to the textile and finished clothing industry which are experiencing difficult times. This incentive can be in the form of tax reduction, production subsidies, or financing support to help companies face difficulties and encourage growth again.

"That way we hope to reduce the economic impact of people affected by layoffs," said Rahmad

Data from the Ministry of Manpower shows that there are 101,536 employees who have been laid off from January to June. This number is expected to continue to increase until the end of 2024. Rahmad said that the large number of layoffs must receive more attention from the Government.

"Seeing this figure can be a parameter that this is an important issue that must be taken immediately and a solution is sought. Poor people who lose their livelihoods," he said.

In addition, the Government is also considered to need to identify factors that cause the ongoing economic slowdown. Identification of problems must be carried out comprehensively and in detail so that the policies to be taken to overcome these problems can be right on target.

"Support to the workforce is also needed for now, for example the Ministry of Manpower can increase training programs for workers who have lost their jobs, one example is Skillhub," said Rahmad.

Skillhub is a training service to improve competence for free from Manpower. Rahmad assessed that the improvement of the Skillhub program must also pay attention to the era of times.

"This program must include skills relevant to the current work market needs, so that those who have been laid off can easily switch to sector or new jobs," he explained.

On the other hand, Rahmad emphasized the importance of collaboration between related stakeholders. Including increasing cooperation with the Indonesian Chamber of Commerce (KADIN) to create programs that support industrial development and worker protection.

"This collaboration can include the preparation of policies, labor training, and innovation initiatives," explained Rahmad.

The layoff storm is known not only to hit the textile and clothing industry. Several other industrial sectors are also experiencing difficulties, such as in the mass media sector which has recently caused many media offices to close or go out of business.

Recently, PT Era Media Informasi (Gatra Media Group) stated that it was bankrupt so that Gatra media had to stop operating and lay off its employees. The company reportedly has not paid salaries as of May, June, July 2024, to BPJS Employment employees who have been in arrears for almost 26 months.

Other problems also include the lack of clarity regarding the nominal number of pairs, and the contract employee has not yet been registered with BPJS Ketenagakerjaan.

In addition, data compiled by the Confederation of Nusantara Trade Unions (KSPN) until June 2024, recorded around 13,800 textile workers were laid off on the grounds of efficiency until the factory closes. A total of 10 factories reduced employees.

Rahmad hopes that the company will continue to fulfill its responsibilities to employees even in difficult circumstances.

"Companies are required to provide employee rights, including severance pay and unpaid salaries when deciding to lay off. This is a provision of the Employment and Job Creation Law," he said.

The government must also oversee and supervise the rights of workers who are laid off in accordance with statutory regulations. It is not permissible for workers who experience layoffs to be neglected," concluded Rahmad.