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Massive Layoffs Just an Issue

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layoffs phenomenon in Indonesia
layoffs phenomenon in Indonesia

By: Ferga Nurmansyah *)

Jakarta, CIDISS – Starting the beginning of 2016 rumors of massive layoffs that occurred in Indonesia. There may have been a massive layoffs in various companies in Indonesia mainly related to the closure of an electronics factory Panasonic, Toshiba, PT Chevron Pacific Indonesia (CPI), as well as the automotive company Ford from the United States (US). But the fact that occur are not as imagined various parties. Toshiba and Panasonic Company closed its context because they can’t compete with other electronic companies from South Korea. Company – the company is doing the relocation and reorganization to make it more efficient. Such conditions ultimately lead to the impression of massive layoffs occurred in the company – the company.

The Ministry of Labour has also been called a number of companies planning layoffs (layoffs) to their employees to make clarifications. In the clarification, stating simply PT CPI will improve efficiency because world oil prices decline. Efficiency do with the reduction of foreign workers (TKA), by not extending the contract and recruit new foreign workers. However, the efficiency measures have not been able to make the PT CPI to survive, thus making the company returned to the efficiency of the employees with a program of voluntary resignation offer as much as 25% of the total workforce of about 1,700 people.

Meanwhile, PT Toshiba calls will layoffs due to a change of ownership so that should take off 360 people. Meanwhile, PT Panasonic merged into PT Panasonic Gobel, instead of closing the company or moved from Indonesia, but reducing the number of factory employees 480 people. The employees were offered to move to Ungaran (Central Java), Pasuruan (East Java), and Cullinan (West Java).

In this case, in Indonesia there are no layoffs resulting business climate is not conducive to require companies doing layoffs. The economic condition in Indonesia is still good. It was shown by the economic indicators of Indonesia’s relatively better, as the value of the rupiah against the US dollar is quite strong in the range Rp.13.000 and Indonesia’s international reserves above 100 billion US dollars. In addition, the security situation is still favorable, evidenced by its impact on the economy by the devastating terror cases – recently.

Meanwhile, workers who are already affected by layoffs earlier this year should immediately look for a new job. Therefore, the chances of workers who need new jobs outweigh companies doing layoffs for the job. The government must take an optimal way, so that the employment problem is not a pragmatic solution but more strategic and targeted to inform you which areas need the workers.

Employment should be accelerated with the relocation of employees to companies that need. To that end, the need for more intensive communication between ministries of labor and workers, any location that requires workers. All parties also need to support the government, to keep the situation conducive Indonesian economy like with no action – demonstrations that could disrupt the investment climate. [FN]

*) Contributor CIDISS

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