55,000 Indonesian Workers Face Mass Layoffs, Here's the Government's Promise
The House of Representatives (DPR), together with the government and labour unions forming the Layoff Mitigation Task Force, held a meeting at the Nusantara III Building in the Parliament Complex, Senayan, Central Jakarta, on Friday (26/6/2026). Minister of State Secretary Prasetyo Hadi stated that one of the issues discussed was the problem of industrial gas supply. “There are several problems related to gas supply to our industries which we have coordinated, and in accordance with the president’s instructions to immediately find a solution, we may make a decision within one to two days to ensure activities in sectors requiring gas can proceed as they should, especially in the industrial sector,” he said.
On the same occasion, the President of the Confederation of All-Indonesian Workers’ Unions (KSPSI), Andi Gani Nena Wa, revealed that data from his association shows 55,000 factory workers are threatened with layoffs. He noted that one company, PT Granito, has already been shut down. “Three days ago, the company called in and declared all workers laid off. Because of that, the meeting decided and perhaps within 1-2 days the government will immediately announce a decision regarding industrial gas, and hopefully, it can save a situation that I can describe as very critical,” said Andi Gani.
Furthermore, he mentioned that the Work Plan and Budget (RKAB) issue was also discussed, which he said holds the potential for massive layoffs affecting 150,000 workers. “I am confident the government will make a decision very quickly and carefully. I assure you the government is on the side of the workers and also the employers, seeking a win-win solution. Hopefully, by Monday there will be a decision regarding industrial gas and the RKAB,” he added.
It was previously known that the ceramics industry is facing severe pressure due to the depletion of industrial gas supplies. According to data compiled by the association, the realisation of the Specific Industrial Gas Allocation (AGIT) from January to May 2026 only reached approximately 47.5% of the established requirement. The supply shortage has forced the industry to seek alternatives through regasified LNG, which is significantly more expensive than the specific natural gas price (HGBT). The price of regasified LNG is currently reported to have reached around US$20.5 per MMBTU. As a result, the gas costs borne by the ceramics industry have soared to an average of US$15-16 per MMBTU, far above the HGBT price set at US$7 per MMBTU.