Alarm! 9,000 People Face Mass Layoffs Over the Next Three Months

Jakarta, CNBC Indonesia - The Indonesian Confederation of Trade Unions (KSPI) has revealed that the threat of mass layoffs is becoming visible across several industrial zones. A potential wave of layoffs is said to be hitting the manufacturing sector and labour-intensive industries in various regions.

KSPI Vice President Kahar S. Cahyono stated that for several months, the union has been warning of the threat of workforce reductions amidst global economic pressures and escalating geopolitical situations.

“Since several months ago, KSPI has warned of the threat of layoffs under the shadow of war. KSPI has warned that there is a potential for 9,000 workers to lose their jobs or face layoffs across 10 companies in the next three months,” Kahar said during a press conference on Tuesday (19/05/2026).

Reports of layoffs are now arriving from several companies in industrial areas such as Bogor, Serang, and Sidoarjo. Some companies have even laid off hundreds of workers in quick succession.

In Serang Regency, for instance, layoffs have been reported at PT Nikomas, affecting 279 workers. Additionally, layoffs occurred at PWI 2 involving 223 people, and PT Sin Han Babis involving 176 people. Meanwhile, in East Java, layoffs were also reported at PT and CV Toyota Asri Motor, affecting approximately 200 workers.

“The layoffs are already starting to happen. This is no longer just a potential threat because reports have been received that layoffs are currently underway,” he said.

KSPI also highlighted data from the Ministry of Manpower, which recorded that the number of workers affected by layoffs reached 15,425 between January and April 2026. The largest surge was noted in April.

“From January to March, the number of people laid off was 8,389. In April, there was an increase in the number of people laid off, reaching 7,036, which represents an 83.9% increase in just one month,” said Kahar.

In addition to global geopolitical factors, KSPI believes that the rise in industrial fuel prices is also straining company conditions. The increase in energy costs is seen as directly impacting production costs, particularly in the manufacturing and labour-intensive industrial sectors.

“When industrial fuel prices increase, production costs will automatically rise. When production costs rise, companies will implement efficiency measures, and one of the victims will be the workers, as they will lose their jobs,” he added.