BANKRUPTCIES, LAYOFFS HIT INDONESIA: OVER 60,000 JOBS LOST IN TWO MONTHS

By Mohd Iswandi Kasan Anuar

JAKARTA, March 14 (Bernama) -- Mass layoffs have affected more than 60,000 workers across 50 companies in Indonesia between January and February 2025, according to the Labour Party and the Indonesian Workers’ Confederation (KSPI).

KSPI President Said Iqbal said its research has indicated that 30 per cent of these companies, including the renowned textile firm Sritex, have gone bankrupt, emphasising the widespread nature of the problem.

He noted that the layoffs have primarily affected industries such as textiles, garments, footwear, electronics, and automotive, as well as other labour-intensive sectors.

“Over 60,000 people have lost their jobs, and this number is expected to reach hundreds of thousands in the coming months. This layoff crisis is very serious,” he said in a press conference, as quoted by CNBC Indonesia.

More than 21,000 workers have been made redundant at companies including PT Karya Mitra Budi Sentosa, which has laid off 10,000 employees, and PT Danbi Internasional, PT New Era, and PT Yihong Novatex, each shedding 2,000 jobs.

Other companies, such as PT Aditec Cakrawityata, PT Duta Cepat Pakar Perkasa, and PT Dupantex, have also made significant job cuts, with the number of affected workers ranging from 500 to 1,500.

Said stressed the urgency for the government, particularly the Manpower Ministry, to take serious action to address the crisis, calling for the establishment a layoff task force.

“With government intervention, it is hoped that the wave of layoffs can be prevented and managed for the remainder of 2025,” he added.

-- BERNAMA