Layoffs Reach 23,000 People; Legislator Urges JKP Programme to Move Beyond Cash Assistance
Netty Prasetiyani Aher, a member of Commission IX of the Indonesian House of Representatives (DPR RI), has highlighted the rising number of layoffs throughout 2026. According to data from the Ministry of Manpower, as of May 2026, 23,470 workers have been laid off and are registered as participants in the Job Loss Guarantee (JKP) programme.
“This figure must be a serious concern for all parties. Behind every layoff statistic, there is a family losing their source of income and facing economic uncertainty,” Netty stated in a briefing on Tuesday.
Netty believes the JKP programme is a vital instrument for providing temporary protection to displaced workers. However, she warned that the programme should not be limited to providing mere cash assistance.
“The JKP programme must truly serve as a bridge so that workers can re-enter the workforce through training, competency enhancement, and more effective access to labour market information,” she said.
Furthermore, she emphasised that Indonesia’s labour challenges involve not only layoffs but also the need to improve the quality of human resources. Consequently, Netty noted that workers must continuously upgrade their skills and competencies to adapt to the increasingly dynamic changes in the working world.
“Workers also need to utilise various training and capacity-building programmes provided by both the government and the business sector. Strong competence will increase competitiveness and expand job opportunities,” she explained.
The legislator, who oversees labour affairs, also urged the business community to prioritise principles of fairness and social responsibility when facing economic pressures.
“Business sustainability is important, but worker protection must also be a priority. A healthy industrial relationship can only be achieved if the interests of workers and businesses are balanced,” she added.
Netty encouraged the acceleration of discussions regarding labour regulations that can provide legal certainty for workers while maintaining a healthy and productive investment climate.
“We need collaboration between the government, employers, and workers to face current economic challenges. Prosperous labourers, expanding businesses, and a growing national economy must be our shared goal,” Netty concluded.
The Speaker of the Indonesian House of Representatives, Puan Maharani, expressed hope that the formation of a Layoff Task Force (Satgas PH) would be able to anticipate potential waves of layoffs.
Mohammad Faisal, Executive Director of the Centre of Reform on Economics (Core), revealed that the surge in layoffs in 2025 occurred largely within labour-intensive industries.
Meanwhile, the Confederation of Nusantara Trade Unions (KSPN) recorded that 126,160 of its members were affected by layoffs between 2024 and October 2025.