Indonesia sees rising layoffs as rupiah weakness hurts businesses

The Indonesian Chamber of Commerce and Industry warned that the continuing depreciation of the rupiah, now trading around 17,600 per US dollar, is increasing operating costs for firms that rely on imported inputs. Chamber deputy chairman Sarman Simanjorang said, “If the weakening exchange rate persists, turnover will be further pressured and could lead to workforce rationalization,” and urged the government to activate its job‑preservation task force.

Data from BPJS Ketenagakerjaan shows the impact on workers. According to Ogi Prastomiyono of the Financial Services Authority, “The PHK phenomenon can increase payment of benefits in BPJS Ketenagakerjaan, especially JHT and JKP.” Claims for the unemployment‑insurance program Jaminan Kehilangan Pekerjaan rose 91% year‑on‑year, while Jaminan Hari Tua withdrawals grew 14.1% YoY to about Rp1.85 trillion, reflecting a wave of job cuts across the industrial sector.