By: Nahda Kumalasari
The wave of layoffs occurring in various regions serves as an important warning that must be addressed swiftly and appropriately by all stakeholders. The government views this challenge not merely as an obstacle, but as an opportunity to strengthen its commitment to creating inclusive and sustainable employment for all Indonesians.
Various concrete measures have been rolled out, ranging from skills training and certification programs to the strengthening of the investment ecosystem. All of these policies are focused on strategic sectors, particularly industrial downstreaming, which is considered capable of absorbing a large workforce while also increasing the added value of domestic products. The government is committed to developing a competent, adaptive, and globally competitive workforce in the era of digitalization and green industry.
Minister of Investment and Head of the Indonesia Investment Coordinating Board (BKPM), Rosan Roeslani, stated that human resource readiness is one of the key attractions for foreign investors. Global investors tend to consider workforce readiness as a crucial factor in making investment decisions. A workforce that is trained and ready to work from the early stages of industrial development will enhance efficiency and accelerate the operationalization of production facilities. This not only speeds up the achievement of investment targets but also boosts market confidence in the country’s economic stability.
Rosan also mentioned that between 2025 and 2029, investment realization is projected to create approximately 2.8 to 2.9 million new jobs annually. Downstream sectors, particularly in mineral processing, renewable energy, and industrial digitalization, are the main drivers behind this job creation. Throughout 2024, the downstream sector recorded an investment value of IDR 920 trillion, an 18% increase compared to the previous year. This performance indicates a positive trend that is expected to continue growing and become a main pillar of the national economy.
Alongside increasing investment, the government is also strengthening vocational training through a network of Job Training Centers (BLKs) spread across Indonesia. Under the leadership of Yassierli, the Ministry of Manpower plays a strategic role in preparing a skilled workforce that meets industry demands. Community-based BLKs, established in Islamic boarding schools (pesantren) and remote areas, have reached groups previously lacking access to quality training. This year, the government targets 250,000 participants to take part in vocational training across priority sectors such as manufacturing, agriculture, the creative economy, hospitality, and services.
In addition to training, certification programs are also a key focus. Certification serves as an essential tool to ensure national competency standards and improve workforce competitiveness. The National Professional Certification Agency (BNSP) recorded that as of March 2025, more than 1.1 million workers have been certified. This is a tangible result of the government’s efforts to develop high-quality human resources evenly across the country. Certification also adds value for job seekers facing increasingly tight competition, including for employment opportunities abroad.
The alignment between improving workforce quality and investment flow forms a strong foundation for the development of the national employment sector. Central government efforts are further reinforced by regional synergies. In East Java, Governor Khofifah Indar Parawansa has taken swift and effective measures to maintain employment stability. Data from the East Java chapter of the Indonesian Employers Association (Apindo) shows that around 40,000 workers were affected by layoffs in the first two months of 2025. However, the provincial government opted for a solution-based approach by encouraging dialogue with industry players. As a result, several companies chose alternatives such as reducing working hours instead of full layoffs, helping to preserve worker welfare.
Local governments also actively support sectors with strong labor absorption potential by partnering with training institutions, vocational colleges, and industry players. Across regions, labor-intensive village-based programs and support for MSMEs continue to be expanded as a means of absorbing local workers.
This commitment reflects a spirit of collaboration between central and regional governments to create a strong and adaptive employment ecosystem in the face of global challenges. Programs such as the Pre-Employment Card, BLK revitalization, and vocational education reform are key pillars in building a sustainable and highly competitive employment system. Rather than focusing only on short-term goals, all these policies aim to build a more resilient labor system capable of withstanding economic and technological disruptions.
The government continues to demonstrate that its presence is not only as a safety net during crises but also as a visionary architect of the future. Amid global uncertainty, the government remains focused on creating new job opportunities through a comprehensive approach that includes investment, training, and certification. Public support for these policies is vital to the success of economic and employment transformation.
With the spirit of mutual cooperation and optimism, every challenge can be turned into an opportunity. The government continues to work to ensure that every citizen has a fair chance to grow, live prosperously, and contribute to the nation’s progress.
The author is a labor analyst at the Urban Catalyst Institute
