By: Aditya Akbar)*
The government firmly ensures that employment conditions remain stable and the manufacturing sector continues to grow. Various strategic policies have been implemented to maintain the balance of the labor market and ensure sustainable industrial growth, so that the assumption of a storm of layoffs (PHK) has no strong basis.
Finance Minister Sri Mulyani dismissed the issue of a storm of layoffs by stating that the manufacturing sector, including labor-intensive industries such as textiles and textile products (TPT), and footwear, continues to show growth. In fact, even though several companies experienced obstacles, the textile industry managed to grow by 4.3 percent in 2024 after experiencing a contraction in the previous year. The footwear industry also recorded growth of 6.8 percent compared to 2023.
Other sectors, such as the food and beverage industry, chemical industry, electronics, and base metals, also experienced significant growth. This achievement also contributed to the manufacturing PMI index which reached 53.6 in February 2024, indicating a strong expansion of the manufacturing sector.
In line with Sri Mulyani, Minister of Manpower Yassierli also emphasized that news about the storm of layoffs needs to be studied based on official data. He said that information from various companies, including PT Mayora Indah Tbk, shows that more workers are absorbed than the number of workers who are laid off. The government continues to ensure that industries that make adjustments continue to comply with labor regulations, including the fulfillment of workers’ rights.
As a concrete step to maintain employment stability, the government continues to improve vocational training programs that are in line with industry needs. This program aims to ensure that graduates have skills that are in line with modern industrial developments, including in terms of digitalization and automation. Thus, the Indonesian workforce can be better prepared to face global challenges and have high competitiveness.
Minister of Industry Agus Gumiwang Kartasasmita added that the manufacturing sector continues to grow even though several companies are making efficiencies. He emphasized that the Ministry of Industry continues to encourage new investment to ensure the creation of wider employment opportunities.
Based on the data available, the number of new workers absorbed is much greater than the number of workers who are laid off. This policy is in line with the government’s strategy to increase the competitiveness of the national industry through incentive programs and policies that support business expansion.
In addition, government support for the manufacturing industry can also be seen from the various incentives provided, such as ease of licensing, tax relief, and encouragement of the use of domestic products. This step not only maintains the sustainability of the existing workforce, but also creates new job opportunities in the formal sector. The government is trying to ensure that the industrial ecosystem remains conducive so that workers can work more productively and get decent welfare.
Based on data from the National Industrial Information System (SIINas), the manufacturing sector in 2024 managed to absorb more than one million new workers, with a ratio of new workforce absorption compared to layoffs reaching 1:20.
This figure shows that the industry continues to expand and is able to accommodate more workers. In addition, the government also continues to encourage companies to improve worker welfare through training programs and competency improvement so that workers can be more productive and have better career prospects.
To ensure long-term employment resilience, the government has developed various strategies, such as industrial digitalization, strengthening Micro, Small, and Medium Enterprises (MSMEs), and optimizing the creative economy sector.
These steps are expected to create more new jobs and reduce dependence on the manufacturing sector. By diversifying the workforce sector, employment stability can be better maintained, especially in facing global economic dynamics.
In addition to focusing on job creation, the government is also trying to maintain people’s purchasing power through strategic policies such as energy subsidies and social assistance for low-income groups. This policy aims to ensure that the welfare of the workforce is maintained along with industrial growth. In addition, by increasing people’s purchasing power, the wheels of the national economy can continue to move and encourage sustainable industrial growth.
The government is also committed to continuing to improve the quality of the workforce through various vocational training and education programs. This program includes skills certification, competency improvement, and in incentives for companies investing in workforce development. With these efforts, it is hoped that the Indonesian workforce will not only be ready to face challenges in the domestic market, but will also be able to compete globally.
The steps taken by the government reflect a strong commitment to maintaining employment stability and ensuring the sustainability of national industrial growth. With synergy between the government, the business world, and the community, employment policies that are oriented towards worker welfare will further strengthen the foundation of the national economy.
Therefore, it is fitting that all elements of society support the government’s efforts to maintain employment stability for a more prosperous and sustainable future.
)* The author is an economic observer
