{
    "success": true,
    "data": {
        "id": 1825965,
        "msgid": "cigarette-factory-workers-at-risk-of-mass-layoffs-manpower-ministry-issues-warning-1782474720",
        "date": "2026-06-26 18:25:24",
        "title": "Cigarette Factory Workers at Risk of Mass Layoffs, Manpower Ministry Issues Warning",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's Manpower Ministry has cautioned that policies targeting the tobacco industry must consider the livelihoods of millions of workers. The sector employs an estimated 5.3 million people across its supply chain, with many being women with low education levels who would struggle to find new jobs. The ministry is urging the government to ensure mitigation strategies are in place before implementing stricter regulations.",
        "content": "<p>The Ministry of Manpower has reminded policymakers that any\nregulations targeting the tobacco industry must consider the impact on\nmillions of workers, as the labour-intensive sector provides a\nlivelihood for numerous families from upstream to downstream.<\/p>\n<p>Meinar Kusumo, Head of the Institutional Industrial Relations Team at\nthe Ministry of Manpower, stated that an estimated 5.3 million workers\ndepend on the tobacco industry, with some studies suggesting the figure\ncould be even higher. The supply chain involves farmers, factory\nworkers, hand-rollers, distribution, and the retail sector.<\/p>\n<p>\u201cThe tobacco industry is one of the labour-intensive sectors that\nmakes a strategic contribution to employment. From upstream to\ndownstream, we estimate it involves 5.3 million people. Some studies\neven mention figures of six to nine million. This is not a small number\nand is a serious concern for the Ministry of Manpower,\u201d Meinar said\nduring a tobacco industry discussion on Friday (26\/6\/2026).<\/p>\n<p>The ministry also highlighted the characteristics of workers in the\nsector, who are predominantly women with relatively low levels of\neducation. This group is considered more vulnerable to long-term\nunemployment if laid off, due to a mismatch between their skills and the\nneeds of other industries.<\/p>\n<p>\u201cIf a worker is laid off, the impact is not just on one person. An\nentire family is affected. It can then lead to problems in children\u2019s\neducation, health, and even stunting. This is an inseparable cycle,\u201d she\nexplained.<\/p>\n<p>According to a study presented by the ministry, any decline in\ncompany revenue due to pressure on the industry could result in massive\njob losses. Consequently, the government is preparing several mitigation\nmeasures, including reskilling and upskilling programmes, as well as\nutilising tobacco excise revenue-sharing funds to improve worker\ncompetency.<\/p>\n<p>Meinar added that laid-off workers can also receive protection\nthrough the Job Loss Insurance (JKP) programme, provided they are\nregistered as participants of BPJS Ketenagakerjaan. However, this\nprotection does not yet fully cover informal workers, who still make up\na significant portion of the tobacco sector.<\/p>\n<p>\u201cOur recommendation is not to impose stricter regulations before\nalternatives or mitigation strategies are in place. Controls can still\nbe implemented, but they must ensure the sustainability of the industry\nand job opportunities, accompanied by well-planned mitigation\nstrategies,\u201d Meinar said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/cigarette-factory-workers-at-risk-of-mass-layoffs-manpower-ministry-issues-warning-1782474720",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}