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Indonesia layoff mitigation efforts

Updated 1 time since CLSTR started tracking revisions of this situation.

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2026-08-02 06:33 UTC → 2026-08-08 10:33 UTC · added removed

In late May 2026 the Indonesian government announced the planned dissolution of state‑owned telecom PT INTI, pledging to retain assuring its 171 employees while assets are evaluated. staff would keep their jobs. A month later officials warned warnings emerged that up to 2,500 workers at PT Pakerin and about 4,000 at PT Feng Tai could face faced possible dismissal after lost loss of Nike orders and financing shortfalls, orders, prompting calls for protective policy measures. policies. By late June the Indonesian Employers Association (Apindo) issued released a 12‑point draft framework to curb limit mass layoffs, recommending reduced hours, efficiency gains and a minimum trigger based on order decline declines before any terminations, with a pathway to government stimulus assistance. terminations. On 1 July President’s Special Adviser on Labour Said Iqbal announced pledged full state funding for medical and psychiatric care for three workers kidnapped at a Jakarta printing firm and announced a Danantara‑led financial assessment of PT Pakerin’s finances to seek Pakerin, seeking a state‑owned bank state‑bank loan of up to Rp400 billion to revive the plant and re‑employ roughly 2,700 staff. Iqbal travelled to Jakarta on 3 July to meet workers and management of e‑commerce platform then ordered investigations into layoff rumors at digital platforms Tokopedia and short‑video app TikTok after reports of large‑scale terminations, ordering a direct government investigation and stressing dialogue‑based enforcement of labour law. The TikTok‑Tokopedia group publicly TikTok; the companies denied any mass layoffs on 6 July, noting dismissals and reported internal talent mobility and recruitment for more than 100 new positions. The Labour Ministry confirmed that hires, while about 200 employees have had already accepted compensation packages and that no large‑scale terminations have occurred. On 13 July the packages. The government intensified its layoff‑mitigation effort dialogue‑based mitigation in the digital sector, with Iqbal saying officials will hold further dialogue sector on 13 July, with workers, company management and the Ministry of Labour before any termination decisions, supported by the Satgas PHK task force’s fact‑finding, early‑warning monitoring high‑risk firms and promoting bipartite mediation. On 14 July Iqbal highlighted gaps in layoff statistics and called for stronger occupational‑safety oversight after a fatal accident at PT Moya, urging better data integration among ministries, BPJS and trade unions. By early August, provincial data from Maluku showed only 74 workers affected by layoffs, and Apindo refined its preventive measures, adding early‑company‑mapping indicators to intervene before dismissals become inevitable.

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  1. 2026-08-08 10:33 UTC Indonesia layoff mitigation efforts
  2. 2026-08-02 06:33 UTC Indonesia layoff mitigation efforts

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