Labour Leader Warns of PHK Wave Threatening This Industry, Prepare for 3 Months

Jakarta, CNBC Indonesia - The President of the Indonesian Confederation of Trade Unions (KSPI) and the Labour Party, Said Iqbal, stated that labour-intensive industries are the sector most quickly affected by the threat of employment termination (PHK) due to global pressures and rising production costs.

He explained that the impacts of the war and rising energy prices are not yet felt at present, but in the near future, their effects will start to become apparent.

“This will be seen in three months (ahead). Once again, this is just the potential for PHK. In labour-intensive industries, textiles, garments, shoes whose raw materials or inputs are from imports,” said Said in a press conference broadcast online, Friday (10/4/2026).

According to him, labour-intensive industries are the most vulnerable because they heavily rely on imported raw materials whose prices are continuously rising. These pressures, he said, are already starting to be felt in several sectors, one of which is the plastic-based industry.

“Plastic raw materials are now rising, plastic prices have gone up,” he stated.

In addition to labour-intensive industries, capital-intensive sectors are also beginning to face similar pressures, particularly the automotive industry which is affected by the surge in fuel oil (BBM) prices.

“Then, the industries also affected are those in capital-intensive sectors like the automotive industry, with soaring BBM prices, of course, the automotive industry that is thinking of producing vehicles on a mass or large scale will reduce production, so company efficiency will lead to PHK,” explained Said.

He emphasised that the combination of rising energy and raw material prices is the main factor driving companies to carry out efficiency measures, which ultimately leads to the potential for PHK in the near future.