42,000 Indonesian Workers Laid Off in the First Half of 2025: Here's the Trend

Employment

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Nabilah Muhamad 18/07/2025 11:20 WIB

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Data from the Indonesian Ministry of Manpower shows that 42,385 employees in Indonesia experienced layoffs during the first half of 2025. The highest wave of layoffs occurred in February.

Number of Employees Affected by Layoffs in Indonesia (January-June 2025)

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Number of Employees Affected by Layoffs in Indonesia (January-June 2025)

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Data from the Indonesian Ministry of Manpower (Kemnaker) shows that 42,385 employees in Indonesia experienced layoffs (PHK) during the first half of 2025.

Based on the trend, the highest number of layoffs in Indonesia occurred in February, with a total of 17,796 cases.

The number decreased in subsequent months. The latest data in June 2025 shows 1,609 layoff cases.

The President of the Indonesian Workers' Union Confederation (KSPI) and President of the Labor Party, Said Iqbal, stated that the widespread layoffs across various industrial sectors are due to the import tariff policies implemented by the United States (US) President Donald Trump against Indonesia.

"By flooding the market with US products with zero percent tariffs, local producers, MSMEs, and small factories will be unable to compete. What happens? Layoffs," said Iqbal in a statement, as reported by Kompas.com on Friday, July 18, 2025.

He explained that the Indonesian government had reached an agreement with the US government, reducing import tariffs on Indonesian goods from 32% to 19%.

However, this tariff reduction came with the consequence of Indonesia opening its market to US products with zero tariffs and no non-tariff barriers.

“On the surface, it seems Indonesia benefits. But remember, this tariff reduction comes with a great sacrifice; US products are free to enter without tariffs. This is a form of mortgaging national economic sovereignty,” said Iqbal.

(Read: Accumulation of Worker Layoffs in Jakarta until February 2025)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."