By: Dhita Karuniawati )*
Amidst global economic challenges and evolving industrial dynamics, the Indonesian government remains committed to maintaining employment stability to prevent mass layoffs. Various policies and strategic measures have been taken to protect workers’ rights, create a conducive work environment, and ensure business continuity in both the formal and informal sectors.
These measures reflect the government’s serious efforts to maintain a balance between the interests of workers and the business world. In a fragile economic environment driven by global factors such as geopolitical tensions, economic slowdown, and technological disruption, the government plays a key role as a buffer for labor market stability.
Recently, President Prabowo Subianto emphasized that the United States’ tariff reduction was a strategic effort to protect workers and prevent mass layoffs in the national industrial sector.
Indonesian President Prabowo Subianto stated that the trade tariff agreement with US President Donald Trump was made to protect millions of Indonesian workers from the threat of massive layoffs. The safety and interests of Indonesian workers were the top priority in making the decision.
The agreement was announced hours after US President Donald Trump announced that Washington had agreed to lower import tariffs on Indonesian goods to 19 percent. This figure is lower than the 32 percent tariff Trump had threatened in April 2025 and is also better than the 20 percent tariff imposed on Vietnam.
As part of the agreement, the Indonesian government agreed to remove a number of trade and non-trade barriers to US products entering the domestic market. The Indonesian government will also undertake large-scale purchases of US goods and services, including the purchase of 50 Boeing aircraft, a US$15 billion energy contract, and US$4.5 billion in agricultural product imports. The government believes this compromise is necessary to avoid disruption to the national industrial sector, particularly those heavily dependent on exports to the United States.
Through this new tariff agreement, the government hopes to provide business certainty for national industrial players, maintain export competitiveness, and ensure the economy continues to turn amid global uncertainty. This step also signals Indonesia’s willingness to play an active role in maintaining international trade stability without sacrificing domestic interests, particularly those of workers who are the backbone of the national economy.
In addition, the government is continuing the Wage Subsidy Assistance (BSU) program, which provides cash directly to workers, which can be used to meet basic needs and increase their purchasing power. BSU can prevent mass layoffs and help companies remain operational, thereby maintaining labor market stability. By maintaining workers’ purchasing power, BSU can help stimulate consumer demand and revitalize the economy. BSU is a crucial instrument in maintaining worker well-being and the overall economy during times of crisis, such as the pandemic.
Finance Minister Sri Mulyani Indrawati stated that Rp6.88 trillion in direct cash assistance (BSU) had been disbursed to 11.4 million workers between June 23 and July 1, 2025. This demonstrates the state’s support amidst the various economic challenges faced. It not only maintains purchasing power but also maintains workers’ morale, as they are the heroes behind economic progress.
The BSU is one of five economic stimulus packages prepared by the government to help people meet their living needs. The public is expected to make the most of this stimulus, thereby building a more competitive and sustainable economy.
The distribution of BSU is regulated in the Minister of Manpower Regulation (Permenaker) Number 5 of 2025 concerning Amendments to the Minister of Manpower Regulation Number 10 of 2022 concerning Guidelines for Providing Government Assistance in the Form of Salary/Wage Subsidies for Workers/Laborers.
Under Ministerial Regulation 5/2025, workers/laborers who receive BSU must meet several requirements, such as being an Indonesian citizen with a population identification number; being an active participant in the BPJS Ketenagakerjaan social security program until April 2025; and receiving a maximum salary/wage of IDR 3.5 million per month.
For workers/laborers working in areas with a district/city minimum wage higher than IDR 3.5 million, the applicable wage regulation is the minimum wage rounded up. This is stated in Article 4 Paragraph 3 of Ministerial Regulation 10/2022, which remains unchanged in the updated regulation.
The details of the minimum wage threshold for the 2025 BSU requirements have been updated in Ministerial Regulation 5/2025. In addition, government assistance in the form of a salary/wage subsidy is provided in the form of Rp 300,000 per month for two months, paid in one lump sum, for a total of Rp 600,000.
A stable employment environment is a crucial foundation for inclusive and sustainable economic growth. The Indonesian government understands that maintaining job security is not just an economic issue, but also a matter of social stability and public trust.
Therefore, efforts to maintain employment stability must be continuously strengthened through cross-sector collaboration, equitable policy reforms, and increased workforce capacity. In facing global challenges, only through synergy and shared commitment can the risk of layoffs be reduced and the quality of the national workforce continuously improved.
The government is inviting all stakeholders, such as employers, labor unions, educational institutions, and civil society, to work together to build an adaptive, productive, and resilient employment system. Thus, the ideals of a Golden Indonesia 2045 as a developed and prosperous nation can be realized through a strong and protected workforce.
*) The author is a contributor to the Indonesian Strategic Information Study Institute
