Indonesian Ministry Moves to Avert 50,000 Layoffs as Industrial Gas Prices Surge

Workers facing termination in Indonesia are urged to scrutinize any separation documents before signing, ensuring they understand severance calculations, the distinction between resignation and dismissal, and retain copies for potential disputes. Labor experts recommend consulting unions or legal counsel to protect rights under the 2023 Labor Law and Government Regulation No. 35/2021.

The Ministry of Manpower (Kemnaker) announced plans to mitigate a possible wave of dismissals affecting more than 50,000 employees at a large ceramic manufacturer in Bekasi, triggered by rising non‑subsidised industrial gas costs. Officials said they are mapping vulnerable sectors, lowering industrial gas prices, and evaluating support measures to keep labor‑intensive industries such as ceramics, granite and textiles competitive and retain jobs.