Indonesia Faces Layoff Crisis: 70,000 Jobs Lost, Unions Call for National Strike

Indonesia is currently dealing with a wave of layoffs, with more than 70,000 workers terminated in the first four months of 2025, according to research by the Labour Party and the Confederation of Indonesian Trade Unions (KSP-PB, KSPI). The crisis has caused an uproar, leading to a planned nationwide strike on June 10, including rallies happening across the cities and in Jakarta.

The layoffs increased dramatically in April, when PT Maruwa Indonesia, a veteran manufacturer in Batam, ceased operations abruptly, leaving 205 workers, including 49 permanent employees, without jobs or compensation.

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In the first quarter of 2025, layoffs reached 60,000 across 40 different firms. By April, that number multiplied, including 80 companies in the total of 70,000, nearly doubling in one month.

The Ministry of Manpower stated that there were only 26,000 layoffs, which union leaders called ‘manipulative.’ They said that workers have been misinformed by the ministry. KSPI President Said Iqbal mentioned that from BPS data, there were over 73,000 old-age fund withdrawals because of termination while from BPJS Ketenagakerjaan, at least over 52,000 people filed to receive unemployment benefits which indicate actual layoffs.

Unions are advocating for a National Task Force on Layoffs to provide accurate numbers, understand the causes and give real protections to affected workers.