Industrial Competitiveness and Productive Investment Key to Expanding Employment
Strengthening productive investment and industrial competitiveness is considered an important step to maintain employment sustainability amid economic dynamics. In addition to various mitigation efforts undertaken by the government, strengthening the real sector must continue to be encouraged so that businesses have greater room to grow and can create sustainable job opportunities.
Djusman H. Umar, Daily Chair of FSP BUMN Bersatu, stated that employment challenges must be addressed through policies that not only focus on worker protection but also strengthen the business ecosystem to create sustainable employment. A number of policies are needed to maintain business continuity, expand job opportunities, and prevent layoffs. Djusman appreciated the government’s move to establish a Layoff Mitigation Task Force through Presidential Decree Number 10 of 2026, as well as the commitment to provide worker protection instruments worth around Rp500 trillion.
“The government’s move demonstrates the state’s presence in protecting workers. However, strengthening the business world must also continue to be encouraged so that companies have room to grow, invest, and maintain labour absorption,” Djusman said in a statement on Friday (3/7/2026).
According to him, one aspect that deserves attention is maintaining a balance between government financing needs and the availability of financing for the productive sector. With this balance, the industrial, manufacturing, and MSME sectors are expected to have broader access to funding to increase their business capacity. He explained that adequate financing would support investment, business expansion, and the creation of new jobs. Conversely, if financing space for the real sector is limited, companies could face pressure in developing their businesses.
“Strengthening the real sector is one of the key factors in maintaining employment sustainability. Therefore, economic policies must continue to be directed to encourage productive investment and business growth,” he said.
FSP BUMN Bersatu also highlighted the importance of improving national competitiveness. Referring to the IMD World Competitiveness 2025 report, Indonesia’s competitiveness is ranked 40th out of 69 countries. In addition, Indonesia’s labour productivity is considered to still need continuous improvement to compete at the regional and global levels. According to Djusman, this condition is a momentum to accelerate industrial transformation towards high value-added manufacturing, increase labour productivity, and strengthen the investment climate.
Therefore, FSP BUMN Bersatu encourages strengthening fiscal consolidation, expanding productive financing access for the industrial and MSME sectors, accelerating innovation-based industrial transformation, simplifying regulations and bureaucracy, increasing investment in vocational education and technology, and strengthening a healthy business competition ecosystem. “Efforts to maintain employment sustainability require synergy from all stakeholders. With continuously growing investment, an increasingly competitive industry, and a conducive business climate, it is hoped that the national economy can create more quality and sustainable job opportunities,” Djusman said.