Apindo Calls One Million Natural Workers LAYOFFS Throughout 2022, This Is The Trigger

Illustration (Photo: Doc. Antara)

JAKARTA - The Indonesian Employers' Association (Apindo) noted that more than one million workers were laid off throughout 2022.

This is based on data on claim taking by workers on the grounds of layoffs registered at BPJS Ketenagakerjaan in the January-November 2022 period which reached 919,071 workers.

"So, if we take December, it is certain (the number of layoffs) is more than one million. This is what clearly takes JHT because of layoffs," said Apindo Chairman Hariyadi Sukamdani at a press conference in Jakarta, Tuesday, January 3.

He mentioned that there were many factors that led to layoffs throughout 2022.

Not only because of the impact of the COVID-19 pandemic, the company also laid off many layoffs due to falling export requests.

"There are also corporate factors that carry out efficiency," said Hariyadi.

Hariyadi said the policy regarding the minimum wage was also considered to have contributed to the company's steps which then carried out efficiency.

However, he said it didn't happen right away.

"There is also an influence (UMP), maybe the influence of the UMP is not directly, the company is making efficiency," he said.

Meanwhile, Deputy Head of the Manpower and Human Resource Development Division of the BPP Indonesian Textile Association (API) Nurdin Setiawan said the textile industry had experienced a decrease in orders since 2022.

This condition forced textile companies to lay off 60,000 employees.

"Since early 2022 there has been a decrease in orders (orders) by 30-50 percent. Our export-oriented and labor-intensive members, in the first quarter of 2023, the average order is only 65 percent. This means that 35 percent of our utility operationally is empty, while we have to pay workers," he said.

For labor-intensive companies such as the textile industry, the cost of entry is the second largest cost after material costs. Therefore, Nurdin said that the increase in wages above the average was the company's heavy burden.

Nurdin also mentioned that the issuance of Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation or Employment Creation Perppu has an impact on legal uncertainty due to the issue of employment in the Job Creation Perppu which does not also get a solution.

With current conditions, Nurdin hopes that labor-intensive sector entrepreneurs can protect themselves from the government, because directly or indirectly they have absorbed a lot of workers.

"Instead of wanting to make one effort to keep the company sustainable, but employment relationships are maintained, protection to companies that are labor-intensive to export, and their ecosystems, instead they cannot be obtained from the government," he concluded.