Industry Minister asserts no mass layoffs occurring, instead absorbing 20 million workers

Badung, Bali (ANTARA) - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita has assured that a wave of mass layoffs (PHK) is not occurring in the industrial sector; on the contrary, employment absorption has reached 20 million people as of February 2026.

“This can also refute the notion that manufacturing is currently experiencing layoffs everywhere, because based on our data, while we must acknowledge some PHK, the job creation is actually far greater than the layoffs in the field,” said Menperin Agus during the inauguration of the Fashion and Craft Industry Empowerment Centre (BPIFK) building in Badung, Bali, on Friday.

He stated that the national manufacturing industry continues to demonstrate strong resilience and endurance amid global dynamics.

According to him, the resilience of the manufacturing industry was previously proven during the COVID-19 pandemic. At that time, the manufacturing sector was the one that recovered the fastest compared to other sectors.

Menperin Agus explained that, based on the release from the Central Statistics Agency (BPS), the manufacturing industry grew by 5.04% in the first quarter of 2026. This figure is higher than the same period last year, which was recorded at 4.55%.

In addition, the manufacturing sector’s contribution to the national gross domestic product (GDP) reached 19.07% with a value of around Rp1,179 trillion.

“This figure can actually serve as a basis for us to refute all narratives claiming that the manufacturing industry is undergoing early deindustrialisation,” he said.

He added that the trend of the manufacturing sector’s contribution to national GDP has been steadily increasing over the past four to five years. In terms of investment, the manufacturing sector recorded a 36.5% contribution to investment realisation in the first quarter of 2026, valued at Rp182 trillion.

Furthermore, in the foreign trade sector, Agus noted that the contribution of manufactured exports to total national exports has also been increasing. Based on BPS data for January-February 2026, manufactured exports reached 83.6% of total national exports.

“So only 14% of national exports are non-manufactured. Everything is manufactured goods. This shows the importance of our sector to the national economy,” he stated.