Layoffs in Indonesia Increase in the First Half of 2025

Employment

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Adi Ahdiat 18/07/2025 11:32 WIB

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According to the Ministry of Manpower's data, 42,385 employees in Indonesia experienced layoffs in the first half of 2025. This number is higher than the number of layoffs in the previous year.

Number of Employees Affected by Layoffs in Indonesia per Semester I (2023-2025)

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Number of Employees Affected by Layoffs in Indonesia per Semester I (2023-2025)

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According to the Ministry of Manpower's data, 42,385 employees in Indonesia experienced layoffs in the first half of 2025.

This figure is higher than the number of layoffs in the first half of 2024 and 2023, as shown in the graph.

According to Said Iqbal, President of the Indonesian Workers' Union Confederation (KSPI) and President of the Labor Party, further layoffs are potentially imminent across various industrial sectors.

This is partly influenced by a new trade tariff agreement between the United States (US) and Indonesia.

"With the influx of zero-tariff US products, local producers, MSMEs, and small factories will be unable to compete. What will happen? Layoffs as well," said Said Iqbal, as reported by Kompas.com on Friday (July 18, 2025).

Previously, US President Donald Trump stated he would impose a 19% tariff on Indonesian products exported to the US. Meanwhile, US imports into Indonesia will be tariff-free.

This is the result of negotiations between the Indonesian government and Trump, who previously threatened to impose a 32% tariff on Indonesian products.

"They [Indonesia] are going to pay 19% and we are going to pay nothing. We will have full access into Indonesia, and we have a couple of those deals that are going to be announced," Trump said, as reported by Reuters on Wednesday (July 16, 2025).

Editor : Adi Ahdiat

"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."

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Layoffs in Indonesia Increase in the First Half of 2025

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Layoffs in Indonesia Increase in the First Half of 2025

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