Apindo to Issue 12 Guidelines for Companies and Workers to Anticipate Layoffs

The Indonesian Employers’ Association (Apindo) has revealed it is formulating 12 guidelines for employers and workers to mitigate the risk of layoffs (PHK). The guidelines are set to be released soon.

Darwoto, Deputy Chair for Employment at Apindo’s National Executive Board, stated that the guidelines being prepared by the association aim to provide protection for all parties involved, both employers and workers. “We are currently preparing measures to anticipate and mitigate the possibility of layoffs,” Darwoto said in Jakarta, as quoted on Wednesday, 24 June 2026.

Darwoto explained that the guidelines or steps being drafted are expected to provide a sense of security to all parties. He noted that under the 12 guidelines, employers may only terminate employment if all conditions are met and the situation is no longer salvageable.

“The 12 guidelines include measures such as the company reducing working hours, implementing efficiency measures, and experiencing a decline in orders,” he elaborated.

He further stated that once these levels or guidelines have been fulfilled, it is hoped the government can assist companies through stimulus measures during a crisis. However, he added, companies may only lay off employees when the situation truly cannot be sustained. “All these guidelines being prepared are expected to help anticipate layoffs of employees,” he said, adding, “In the current business climate, layoffs are actually a common occurrence.”