Indonesia's Apindo drafts 12 guidelines to manage layoffs

The Indonesian Employers Association (Apindo) is preparing a set of 12 guidelines aimed at mitigating the risk of mass layoffs (PHK) for both employers and employees. Vice‑chair for labour affairs Darwoto said the draft measures include steps such as reducing working hours, improving operational efficiency, and using a significant drop in orders as a trigger before any termination.

The guidelines stipulate that companies may only dismiss workers after all predefined conditions are met, after which they can seek government stimulus assistance. Apindo hopes the framework will provide certainty for businesses, protect workers, and serve as a reference for any government intervention during economic downturns. The draft is still being finalized before broad dissemination to members across Indonesia.