Indonesia to set up layoff task force
Indonesian President Prabowo Subianto has announced plans to establish a national labour welfare council that comprises labour leaders and prominent public figures to advise on policies affecting workers’ rights.
Indonesia’s Labour Party and a coalition of trade unions have called for the establishment of a national layoff task force, an independent body tasked with providing accurate data and crafting a coordinated strategy to address issues relating to layoffs.
According to Labour Party President Said Iqbal, at least 70,000 workers in Indonesia lost their jobs between January and April as more than 80 companies implemented layoffs. The Indonesian Employers Association (Apindo) has warned that this number could surge to 250,000 by the end of the year.
Figures from Apindo and state employment insurer BPJS Ketenagakerjaan showed that approximately 73,000 people withdrew their pension benefits, a measure permitted only in cases of layoffs or retirement. Additionally, 52,000 individuals claimed job loss insurance between February 2024 and February 2025.
On May Day (May 1), President Prabowo Subianto also announced plans to establish a national labour welfare council comprising labour leaders and prominent public figures to advise on policies affecting workers’ rights.
Indonesia’s labour force reached 153.05 million in February, an increase of 3.67 million year-on-year. While the overall unemployment rate remained relatively stable, youth joblessness remains a major concern, with 16.16% of those aged 15–24 unemployed. In contrast, only 1.67% of people aged 60 and above were without work.
Although the national open unemployment rate fell slightly to 4.76% in February from 4.82% a year earlier, the number of the unemployed rose by 80,000 due to the rapidly expanding labour force.
