By: Fajar Setiawan
The issue of a potential wave of layoffs (PHK) in domestic industries has recently gained significant attention. However, the government has firmly ensured that the labor market remains stable and the manufacturing sector continues to grow. Through various strategic policies, the government not only maintains balance in the labor market but also ensures sustainable industrial growth.
Minister of Manpower, Yassierli, dismissed the rumors about massive layoffs circulating in the community, stating that reports of mass layoffs need to be verified with official data from the Ministry of Manpower. He mentioned that based on information from various companies, including PT Mayora Indah Tbk, these rumors are not entirely accurate. According to him, industries are actually absorbing more new workers than those being laid off. He also emphasized that industries making adjustments must still comply with labor regulations, including fulfilling workers’ rights.
The government continues to maintain labor market stability through various proactive policies. One of them is the increase in vocational training tailored to industry needs, ensuring that graduates are job-ready and can be immediately absorbed by the growing manufacturing sector. These training programs are designed to equip workers with the skills needed for industry developments, including the increasing adoption of digitalization and automation across production lines. As a result, the Indonesian workforce is not only competitive domestically but also able to compete in the global job market.
Minister of Industry, Agus Gumiwang Kartasasmita, emphasized that despite some companies undergoing efficiency measures, the manufacturing sector as a whole continues to grow. He stated that the Ministry of Industry continues to encourage new investments to ensure that industries continue to create jobs. According to available data, the number of new jobs created is far higher than the number of workers affected by layoffs. This effort aligns with the government’s strategy to enhance the competitiveness of the national industry through various incentive programs and policies supporting business expansion.
The government’s support for the manufacturing sector is also reflected in the various incentives provided to business owners, including ease of licensing, tax relief, and encouragement to use domestic products. He stated that this move not only secures existing jobs but also creates opportunities for more workers to enter the formal sector. This demonstrates that the government continues to create a conducive ecosystem for industrial growth while ensuring the welfare of the workforce.
According to data from the National Industry Information System (SIINas), the manufacturing sector in 2024 absorbed more than one million new workers, with a ratio of new jobs to layoffs reaching 1:20. This increase is considered to show that the industry continues to expand and is able to accommodate more workers. Along with industrial growth, the government also encourages business players to improve workers’ welfare through training and competency development programs, so that the workforce becomes more productive and has better career prospects.
On the other hand, the government is also preparing long-term strategies to ensure labor market resilience in facing global economic dynamics. Measures such as industrial digitalization, strengthening Micro, Small, and Medium Enterprises (UMKM), and optimizing the creative economy sector are expected to create more new job opportunities. This approach aims to reduce dependence on the manufacturing sector and ensure a more diversified workforce.
Head Economist of Bank Permata, Josua Pardede, expressed the view that the government’s policy in strengthening the labor sector has a positive impact on the national economy. He believes that investments in government priority programs, such as Free Nutritious Food and the 3 Million Homes program, will significantly contribute to economic growth and improve public welfare. Additionally, he views the government’s measures to maintain people’s purchasing power as essential in strengthening the resilience of industries against global challenges. Stable economic conditions will drive household consumption, allowing the industrial sector to continue growing without major obstacles.
The government also ensures that people’s purchasing power remains stable through various strategic policies, including energy subsidies and social assistance targeted at low-income groups. With this holistic approach, a balance between industrial growth and workforce welfare can continue to be maintained. Furthermore, these steps will boost investor confidence in investing in Indonesia, thus continuing to create new jobs.
In the future, the government remains committed to ensuring that labor policies not only prioritize stability but also enhance the quality of the workforce. Programs such as improving vocational education, skill certifications, and incentives for companies investing in workforce development will continue to be strengthened. In this way, Indonesia’s workforce will not only be prepared to face domestic economic challenges but also adapt to global changes.
The concrete steps taken by the government reflect its commitment to ensuring the resilience of industries and the national workforce. With full support from various parties, including the business world and society, labor policies that favor workers’ welfare will further strengthen the foundation of the national economy. This optimism is proof that with strong coordination between the government, industry, and the workforce, Indonesia can continue to move toward inclusive and sustainable economic growth.
The author is an Industrial and Labor Policy Researcher
