Central Java Provincial Government Immediately Forms A Layoff Task Force

Central Java Governor Ahmad Luthfi while chairing the Employment Coordination Meeting in Semarang, Monday (2/6/2025). BETWEEN/HO-Central Java Provincial Government

Central Java Governor Ahmad Luthfi instructed the local Manpower and Transmigration Office (Disnakertrans) to immediately form a Task Force for Termination of Employment (PHK) in his area.

"The layoff task force is the president's order. It must be implemented properly in our area. Immediately formed and formulated what to do," he said as quoted by ANTARA, Monday, June 2.

The layoff task force was formed to reduce the potential for mass layoffs, as well as take steps to prevent layoffs of employees without fulfilling their obligations.

This means that the layoffs Task Force begins to act when a company falls into the yellow category.

"So, we did not use the layoff task force at the time of the company's bankruptcy (red), but we have also deployed prevention efforts so that they indirectly prevent layoffs in companies," he said.

The layoff task force consists of several components, including the Manpower Service, trade unions, and labor unions in the company, and employers or company owners.

"The contents will vary. There are several compartments that we have to enter, make work plans, and then we will run them," said Luthfi.

Meanwhile, the Head of the Central Java Provincial Manpower and Transmigration Office, Ahmad Aziz, explained that so far his party has carried out the company segmentation, in three categories.

Companies with the green or steady category are companies that implement labor norm rules. Furthermore, there are companies that are yellow and red.

"Yellow usually has problems. For example, overtime is not paid, rights (employees) are reduced. We have to explore what the problem is. If the problem continues, in the end it can become red or layoffs occur," he said.

Regarding the involvement of the curator, he explained that the curator was involved when the company had bankrupted and the management or owner's responsibility was transferred to the curator.

"Later, when it's bankrupt, there are two options from the curator, namely going concerned or still trying under the curator, then layoffs or closing. That's it," he said.

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The layoff task force will work from before the company is declared bankrupt, but if there has been layoffs, the task force ensures workers' rights in the form of old age insurance, guarantees of job loss, and severance pay, accepted by workers or employees.

"Including other unpaid rights such as reimbursement of leave, reimbursement of overtime. We ensure that it is accepted by the person concerned," he said.