The Government Intensifies Coordination to Prevent Layoffs to Maintain National Productivity

By: Kirana Putri Saira )*

The government continues to strengthen anticipatory measures to maintain national employment stability amidst various global economic challenges. These efforts are carried out through cross-agency coordination, strengthening worker protection, and improving the quality of human resources to maintain national productivity. These steps demonstrate the government’s commitment to ensuring the survival of businesses while protecting workers from the risk of layoffs.

Global economic uncertainty triggered by geopolitical conflicts, high energy prices, and fluctuating exchange rates pose challenges facing many countries. Indonesia is not immune to these impacts. Pressure on production costs has the potential to impact industrial activity, requiring swift and measured action to prevent this situation from leading to increased layoffs.

The government has chosen to strengthen coordination as the primary instrument in addressing these challenges. This approach prioritizes prevention so that potential disruptions to employment can be identified early before they escalate into larger problems.

One of the strategic steps taken is the establishment of a Task Force for Mitigating Layoffs and Improving Worker Welfare. This task force was formed through collaboration between the government, the House of Representatives (DPR), and various stakeholders to expedite the resolution of various labor issues that have often been hampered by lengthy bureaucratic processes.

Deputy Speaker of the Indonesian House of Representatives (DPR RI), Sufmi Dasco Ahmad, explained that the formation of the task force aims to create a faster and more responsive mechanism for addressing various issues faced by workers and companies. According to him, the task force is an important means of bringing together various parties so that information regarding potential layoffs can be obtained early and acted upon promptly.

Dasco explained that the involvement of labor unions in the task force allows for a more rapid and transparent information dissemination process. This allows the government to take anticipatory measures before issues escalate into layoffs on a larger scale.

The existence of the task force also demonstrates the government’s commitment to maintaining sustainable industrial relations. Various reports regarding potential layoffs that have emerged in a number of companies have begun to be mapped and followed up so that solutions can be quickly provided according to the needs of each sector.

Beyond focusing on mitigation, the government is also preparing various forms of support for companies facing business pressures. This measure was taken to maintain the continuity of company operations and maintain existing jobs.

Deputy Minister of Manpower, Afriansyah Noor, emphasized that the government continues to monitor these developments and is taking anticipatory measures to prevent an increase in unemployment. According to him, various global dynamics have an impact on the national industrial sector, requiring a swift and measured response.

One of the programs being strengthened is the National Internship Program. The government increased the participant quota from 100,000 to 150,000 by 2026. This policy aims to provide greater opportunities for young people to gain work experience and skills relevant to industry needs.

Expanding the internship program is part of the government’s long-term strategy to prepare a more competitive workforce. The work experience gained by participants is expected to improve their readiness to enter the workforce while supporting industry’s need for a qualified workforce.

In addition to the internship program, the government is also expanding national vocational training through job training centers located in various regions. This program is designed to improve the competency of high school and vocational school graduates so they have skills relevant to job market needs.

Vocational training not only provides technical skills but also competency certification that can increase the competitiveness of the Indonesian workforce. By improving the quality of human resources, national productivity is expected to be maintained despite facing various external challenges.

The government also provides various supporting facilities to facilitate public access to training programs. This policy demonstrates that workforce development is not solely oriented towards job creation but also towards continuously improving the quality of the workforce.

Furthermore, the business world is also paying attention to emerging economic challenges. Erwin Aksa, Deputy Chairman and Coordinator for Organization, Communication, and Regional Empowerment of the Indonesian Chamber of Commerce and Industry (Kadin), assessed that the business sector is currently facing pressure.

Production costs are rising due to high global energy prices and the unstable rupiah exchange rate.

According to Erwin, a number of industries are beginning to feel the rising costs of imported raw materials, logistics, and financing. This situation presents a challenge that businesses must face in maintaining competitiveness while maintaining the continuity of their operations.

Nevertheless, Erwin believes that many companies are still striving to maintain competitive product prices to prevent further pressure on public purchasing power. These efforts demonstrate that the business community shares a common interest in maintaining national economic stability.

He believes that controlling inflation needs to be supported by various policies that can maintain energy price stability, strengthen the rupiah exchange rate, and ensure a smooth supply of industrial raw materials. Furthermore, logistics deregulation and support for labor-intensive sectors are considered to help reduce cost pressures faced by businesses.

This view aligns with the government’s continued efforts to maintain a balance between worker protection and business continuity. Synergy between the government, the House of Representatives (DPR), workers, and the business community is crucial for facing various emerging economic challenges.

*) Employment Issues Observer