The Layoff Task Force and Job Loss Insurance (JKP) Are Proof of the Government’s Commitment to Protect Jobs
By: Usman Saifullah
The Indonesian government continues to demonstrate a strong commitment to safeguarding employment and preventing layoffs (PHK) through various strategic policies. These efforts are not only a response to global economic challenges but also a reflection of the state’s partiality toward protecting labor as a vital asset in national development. Through concrete steps across sectors, the government aims to ensure a conducive business climate and sustained job security.
State Secretary Prasetyo Hadi stated that the establishment of the Layoff Task Force (Satgas PHK) is a clear sign of the government’s seriousness in addressing the potential for mass layoffs across sectors. He emphasized that the government will not remain passive in the face of rising layoffs and is committed to making worker protection a national priority. Through this initiative, the government seeks to provide assurance that every worker in Indonesia remains protected—even in challenging economic conditions.
As one of its strategic initiatives, the Layoff Task Force is composed of members from various sectors including central and regional governments, business actors, and labor unions. Its responsibilities include early identification of layoff-prone sectors, policy recommendations, and facilitating dialogue between companies and employees. Minister of Manpower Yassierli noted that the task force will also integrate reskilling and upskilling programs as part of a long-term layoff prevention strategy.
This move has gained support from observers. Maria Lestari, Executive Director of the Nusantara Labor Research Institute, said the task force sends a strong message that the state is actively involved in maintaining the labor ecosystem. She added that prevention is better than cure, and this task force shows the government is taking a proactive—not reactive—approach to job security.
On another front, the government is also providing economic stimulus to help companies retain their employees. The Centre of Reform on Economics (CORE) proposed that companies that refrain from layoffs be offered incentives such as tax breaks and wage subsidies. The government has welcomed this proposal as a strategy to maintain purchasing power and strengthen businesses so they can better withstand economic crises. This shows that worker protection and business support are two sides of the same strategic policy.
Another effort being strengthened is the Job Loss Insurance Program (JKP), which offers comprehensive protection for affected workers. Starting in 2025, the government will increase JKP benefits to cover 60% of monthly wages, up to a maximum of IDR 5 million for six months. The program is also paired with training and job access services through vocational training centers (BLK) across Indonesia—allowing laid-off workers to quickly regain productivity with relevant skills.
BPJS Employment Director Anggoro Eko Cahyo stated that the expansion of JKP benefits is proof of the government’s seriousness in ensuring a secure and dignified worker transition. He explained that the skill development provided through this program helps workers adapt to evolving labor market demands and accelerates their reintegration into the workforce. Through such protections, the government is not only offering temporary assistance but also supporting long-term career sustainability.
The government is also continuing its efforts to create new jobs for both new workforce entrants and those impacted by layoffs. As of mid-2025, more than 3.5 million jobs have been created across various sectors, particularly labor-intensive and digital economy sectors. The government is also accelerating permit reform and investment incentives to encourage the private sector to generate employment opportunities. This represents a crucial policy approach that job protection is not just about preserving existing jobs—but also about creating new ones.
President Prabowo Subianto, in his statement, noted that strategic trade policies—including lowering export-import tariffs with the United States—are protective measures to safeguard domestic jobs. He said that trade cooperation with U.S. President Donald Trump aims to maintain the competitiveness of national industries so they don’t lose access to global markets. This decision reflects how geopolitics is also being used as a tool to protect Indonesian workers from global layoff threats.
Social dialogue continues to be emphasized in labor policymaking. The government is promoting a tripartite communication model involving the state, business actors, and workers—providing a participatory platform that allows for more inclusive policy formation. Through this forum, field-level aspirations can enter the policymaking process, helping to prevent industrial conflicts that harm all parties.
The government’s commitment to preventing layoffs and protecting workers has been manifested in various tangible policies—from the formation of the Layoff Task Force, to the expansion of JKP benefits, and incentives for companies retaining workers. All of these steps illustrate the government’s strong stance in support of its working citizens. It proves that protecting the workforce is integral to maintaining national stability.
With synergy between institutions and active public involvement, Indonesia is moving toward a resilient and responsive labor system. Labor protection is now an integral part of the country’s economic recovery and growth strategy. With a measured and collaborative approach, Indonesia is ready to face global economic challenges—without sacrificing worker welfare.
The author is an Economic Policy Analyst
