Businesspeople Confirm Leaked Labour Union Layoffs; Three Firms Close

Jakarta, CNBC Indonesia – Businesspeople have spoken out about layoffs at several companies recently, which are rising due to global conditions being unfavourable and rising prices of goods.

Subchan Gatot, who is the head of the Labour Committee of the Indonesian Employers Association (Apindo) and also the Vice Chairman for Labour Affairs of the Indonesian Chamber of Commerce and Industry (Kadin), confirmed the matter. There are even some small-scale manufacturing firms that have been forced to fold because the current conditions are not workable.

‘In our view, based on the data we have, we have only recently learned that a number of industries have already said they will close operations because they are not strong enough. Although it might be a small-scale sector,’ Subchan told reporters at the DPR building, on Tuesday 18 May 2026.

The firms in question operate in the manufacturing sector. However, he did not detail the names or types of the companies. Nevertheless, their scale is still quite small, so the rise in prices also affects their operations.

‘Terikait jumlah, yang saya dengar ada 3 perusahaan, tapi jumlahnya saya pastikan lagi ya nanti. Kalau sektornya manufaktur,’ he continued.

He also acknowledged the phenomenon of layoffs in several companies recently. However regarding the numbers, he could not confirm yet.

‘Terkait data PHK kalau data dari Kementerian Ketenagakerjaan (Kemnaker), detailnya saya enggak bisa berkomentar banyak ya, tapi memang PHK sudah terjadi,’ he explained.

Moreover, if the government cannot curb price rises, the potential for layoffs could be even larger.

‘Oh ya pastilah. Sekarang saja harga-harga aja sudah pada naik kan. Plastik udah naik, terus juga baja juga udah naik. Semuanya naik,’ he said.

Subchan added that the labour-intensive sector is the most affected by price increases.

‘Paling terdampak itu padat karya, itu paling terdampak dari kenaikan harga-harga barang,’ he said.

9,000 Workers at Risk of Layoffs

Earlier, the Indonesian Workers’ Confederation (KSPI) said threats of layoffs that had previously been warned about are now beginning to materialise in various industrial regions. KSPI notes waves of layoffs emerging in the manufacturing sector up to the labour-intensive industries, with reports of layoffs from a number of KSPI member companies in recent weeks.

KSPI Vice President Kahar S Cahyo said there is potential for 9,000 workers to lose their jobs or be laid off at 10 companies within the next three months.

‘For several months now, KSPI has warned of the threat of layoffs under the shadow of war. KSPI has warned there will be potential for 9,000 workers to lose their jobs or be laid off at 10 companies in the next three months,’ said KSPI Vice President Kahar S. Cahyono at a press conference on Tuesday 19 May 2026.

Currently, layoff reports are coming in from industrial regions such as Bogor, Serang, and Sidoarjo. Some companies have already carried out layoffs with hundreds of workers affected.

Kahar noted that in Serang Regency there were layoffs at PT Nikomas affecting 279 workers. In addition, layoffs occurred at PWI 2 with 223 workers and PT Sin Han Babis with 176 workers. Meanwhile in East Java, layoffs occurred at PT and CV Toyota Asri Motor with about 200 workers affected.

‘Layoffs are now starting to occur. So this is no longer a potential; it has begun,’ he said.