Layoffs Loom in Indonesia Amid Global Geopolitical Tensions, Unemployment Figures Reach 7.4 Million
Layoffs Loom in Indonesia Amid Global Geopolitical Tensions, Unemployment Figures Reach 7.4 Million
- VIVA.co.id/Andrew Tito
Jakarta, VIVA – The government is starting to anticipate the potential increase in layoffs due to worsening global geopolitical conditions, including the impact of the war in the Middle East on the world economy.
The Deputy Minister of Manpower, Afriansyah Noor, said that the government continues to monitor global developments so that the impact on the labour sector in Indonesia can be reduced.
“We are immediately anticipating the occurrence of layoffs which could lead to a large number of unemployed people in Indonesia,” said the Deputy Minister of Manpower in Jakarta, Sunday.
Afriansyah conveyed this while attending the Patriot Move 2026 event held by the Ministry of Transmigration and combined with a joint run with participants from the Patriot Expedition on the occasion of Car Free Day at Bundaran HI, Jakarta.
According to him, the current geopolitical conflicts are putting pressure on many countries, including Indonesia. Therefore, the government is striving to maintain employment stability amid global economic uncertainty.
“We are also currently in a state where global conditions, war, have an impact on all countries including Indonesia,” he said.
The government, said Afriansyah, continues to monitor the impact of the global situation on national labour conditions so that layoffs in various industrial sectors do not spread further.
He also explained that the current unemployment rate in Indonesia reaches around 7.4 million people or equivalent to 4.3 percent of the total population. “The current unemployment rate is equivalent to 7.4 million people, about 4.3 percent of the Indonesian population,” he said.
To reduce the number of unemployed and expand job opportunities, the government is strengthening a number of labour programs, including national internship and vocational training programs.
Afriansyah said that the quota for the National Internship program will be increased in 2026. The government is increasing the number of participants from 100 thousand to 150 thousand people.
“So for 2026, Mr. President (Prabowo Subianto) through the Ministry of Manpower will also open approximately 150 thousand job opportunities, so it will increase from 100 thousand to 150 thousand,” he explained.
According to him, the internship program aims to help new graduates gain work experience while improving skills to be better prepared to meet industrial needs.
In addition to internships, the government is also opening a national vocational training program for high school and vocational school graduates through job training centers.