By: Naura Astika
In the past few months, news about layoffs in a number of industrial sectors has resurfaced. However, the public is asked not to be influenced by the provocative narrative because it does not correspond to the reality that is happening.
Amidst the pessimistic narrative that continues to roll, there are important facts that often escape attention. The latest data from the Ministry of Industry actually shows that the national industrial sector is still showing significant growth, both in terms of labor absorption and increased investment.
Deputy Minister of Industry, Faisol Riza emphasized that the prediction of 280 thousand industrial workers who will be laid off is something that needs to be viewed carefully. His party is optimistic that the signal for the number of layoffs this year will not swallow hundreds of thousands of people. This was conveyed in response to the projection of the number of layoffs this year by BPJS Ketenagakerjaan which could reach 280,000 people.
Not only that, the growth of the workforce occurred in the midst of major investment projects that are underway in various regions of Indonesia. It is recorded that there are almost two hundred companies that are building new production facilities, and from these projects alone it is estimated that they will absorb more than twenty thousand workers. This situation shows that investor confidence in the industrial climate in Indonesia is still very high. Investors are not only investing capital, but also developing production capacity, which of course will have a direct impact on the creation of new jobs.
The narrative of mass layoffs often creates unfounded panic. Many parties equate problems in certain sectors as a national crisis, when in reality it is much more complex. Industry has its own dynamics. In several sub-sectors, there has been a shift in market trends that require companies to carry out efficiency, including in the number of workers. However, this does not necessarily mean that the national industry is experiencing a decline. In fact, these adjustment steps are often part of a long-term strategy to strengthen competitiveness amidst increasingly tight global competition.
Furthermore, the government also continues to encourage increased industrial competitiveness through the Making Indonesia 4.0 program. Digital transformation and automation in the industrial sector aim not only to increase efficiency, but also to open up opportunities for workers with new competencies. This is why the government is actively implementing retraining and skills improvement programs for workers, so that they can remain relevant to the demands of the times. The government also encourages partnerships between industry and vocational education institutions so that new graduates can be directly absorbed into the workforce without experiencing a skills gap.
Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for National Development Planning (Bippenas), Bayu Priawan Djokosoetono said that his party hopes to be involved in the program of 3 million houses, renovation of 11 thousand schools, and construction of 30 thousand Nutrition Service Unit (SPPG) kitchens, so that they can be realized immediately according to target. These programs are expected to increase Indonesia’s economic growth in 2025 by around two percent.
In a rapidly changing economic situation, an adaptive response is key. Therefore, it is important for the public not to be easily influenced by negative narratives that do not necessarily represent the actual conditions. Information must be studied critically and comprehensively. If we only focus on the number of layoffs without considering the number of new workers absorbed by the industry, then the understanding that is formed will be biased and not constructive. We need to realize that behind every challenge, there is always an opportunity that can be taken, especially in the context of national industrial growth.
Indonesia is currently on a major industrial transformation path. The shift from an industry based on cheap labor to an industry based on innovation and technology is taking place gradually. This process certainly requires time and adjustments from many parties. There will be sectors that grow faster, and there will be others that need time to improve. However, as long as the fundamentals of the industry remain strong and supported by the right policies, there is no reason to doubt the future of the national industry.
Closing all concerns, the facts on the ground clearly show that the national industry is not heading towards a downturn. On the contrary, there is a spirit to rise and develop faster. The investment that continues to flow, new production facility construction projects, and the increase in the number of workers are real evidence that Indonesia is still one of the main destinations for industry players, both indomestically and internationally.
Therefore, the narrative of mass layoffs must be positioned proportionally, and the public needs to be convinced that our industry is still strong and will continue to grow. Optimism must be maintained, because the growth we see today is the foundation for a more solid future for the Indonesian economy.
)* Strategic Policy Observer
