Based on data from the Ministry of Manpower (Kemnaker), 13,634 employees experienced layoffs (PHK) in Indonesia during the first quarter of 2023.
The highest number of layoffs was recorded in West Java, with 5,603 employees terminated. Next was Central Java with 4,887 layoffs, and Banten with 2,342.
Layoffs in the first quarter of 2023 were only recorded in 12 provinces; data from the other 22 provinces showed no such occurrences, as seen in the graph above.
However, this data may not reflect the total number of layoffs in Indonesia.
This is because Kemnaker only records layoffs reported by companies through the Manpower Service Information and Application System and/or the Industrial Relations Court.
The actual number of layoffs in Indonesia is estimated to be higher than the Kemnaker data, as some companies have conducted layoffs but have not yet fully reported them.
One example is PT Panarub Industry, an Adidas shoe factory in Tangerang.
"The layoffs at Panarub were planned a year in advance. A total of 2,000 employees were laid off gradually, starting in early January 2023," said Ujang Hendra Gunawan, Head of the Tangerang City Manpower Office, as reported by Beritasatu.com on Wednesday (May 24, 2023).
"To date, from the stages of layoffs they have reported, 1,214 employees have been recorded by us, based on the report submitted by Panarub," said Ujang.