By: Jodi Mahendra)*
The Indonesian government officially launched the Termination of Employment Task Force (Satgas PHK) on May 1, 2025 as a concrete step to protect the rights of workers affected by termination of employment (PHK). This task force was formed following a significant spike in the number of layoffs in recent years. As of October 2024, the number of workers affected by layoffs reached 63,947 people, almost equaling the total for all of 2023 which was recorded at 64,884 cases. The manufacturing industry sector is the largest contributor to layoff victims, followed by the services and trade sectors. This situation raises widespread concerns about increasing unemployment and decreasing people’s purchasing power.
The presence of the Layoff Task Force is a response to these concerns, especially ahead of the 2025 Provincial Minimum Wage (UMP) increase of 6.5 percent. Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the formation of this task force aims to anticipate the impact of mass layoffs due to additional burdens felt by industry players. The government wants to ensure that companies continue to carry out their obligations to workers even under economic pressure, including the obligation to pay severance pay and Eid Allowances (THR).
Minister of Manpower, Yassierli, added that the Layoff Task Force will involve various cross-sector agencies, such as the Ministry of Manpower, Coordinating Ministry for Economic Affairs, Ministry of Industry, and Ministry of Trade.
The PHK Task Force is designed to ensure that the PHK process takes place in accordance with legal procedures and that workers’ rights are protected. In addition, the Task Force will provide solutions for companies that have difficulty fulfilling their obligations through mediation mechanisms, restructuring, or payment rescheduling. The government has also assigned the Task Force to provide strategic policy recommendations in an effort to prevent PHK and strengthen healthy industrial relations. In addition, the Task Force will also monitor the implementation of severance pay and THR payment provisions, as well as take action against violations committed by companies.
The composition of the PHK Task Force is tripartite, involving government elements, representatives of employers, and labor unions. This format was chosen so that the policies and decisions taken reflect common interests and are not biased. In practice, the Task Force will also work with academics and institutions such as BPJS Ketenagakerjaan to support the implementation of tasks in the field. The Minister of Manpower said that a collaborative approach is the main key so that the Task Force is not only a symbol, but is also able to provide real impact.
From the labor union side, the presence of the Layoff Task Force was welcomed positively. The Confederation of Indonesian Trade Unions (KSPI) assessed that this step was a form of government support for workers. They hope that the Task Force will truly become a means of advocacy for workers and take firm action against companies that violate the provisions of layoffs. KSPI also emphasized the importance of monitoring the implementation of severance pay and THR payments, two components of workers’ rights that are often not fulfilled in cases of mass layoffs.
However, business people also expressed their hope that the Task Force could understand the real industrial situation. They hope that the Task Force’s approach is not merely repressive, but also provides solutions for companies facing severe economic pressures. Active collaboration between business people, workers, and the government is considered very important to maintain a balance between worker protection and business continuity.
The presence of the Layoff Task Force not only has a direct impact on workers, but also plays a role in maintaining national economic stability. By ensuring that workers’ rights are fulfilled and layoffs are carried out legally and transparently, the level of public trust in the business world and the government will increase.
In addition, the Task Force has the potential to reduce industrial conflicts that can spread and disrupt the productivity of certain economic sectors. This stability is important so that people’s purchasing power is maintained, which ultimately supports domestic consumption as a pillar of Indonesia’s economic growth as conveyed by the Director of the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira who considered the formation of the Layoff Task Force to be a positive step in Indonesia’s economic growth.
In the future, the effectiveness of the PHK Task Force will depend heavily on the commitment of all parties involved. Periodic evaluations and adjustments to labor market conditions must continue to be carried out so that the Task Force remains relevant. The government is expected not to stop at forming the task force alone, but also to strengthen industrial policies, vocational education, and social security programs as part of a sustainable employment system.
The Tripartite Layoff Task Force is a concrete form of the state’s presence in protecting workers from uncertainty due to layoffs. Amidst global economic pressures and structural challenges in the business world, the formation of this task force reflects the government’s seriousness in maintaining a balance between worker protection and the sustainability of the industrial sector. With strong synergy and consistent implementation, the Layoff Task Force has the potential to become an important milestone in improving the national employment system.
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)* The author is an observer of social and community issues