Manpower Ministry Prepares Mitigation for Potential Layoffs Due to High Industrial Gas Prices

Jakarta (ANTARA) - The Ministry of Manpower (Kemnaker) is prepared to undertake further mitigation measures regarding the potential for layoffs resulting from high non-subsidised industrial gas prices.

“Mitigation is the most important aspect. This means considering how those who are laid off manage their period of job seeking, and how we can absorb new members of the workforce into available employment,” said the Head of the Agency for Manpower Planning and Development (Barenbang Ketenagakerjaan) at the Ministry of Manpower, Anwar Sanusi, in Jakarta on Wednesday.

Previously, the General Chairman of the Confederation of All Indonesian Trade Unions (KSPSI), Andi Gani Nena Wea, reported on Tuesday (23/6) the potential for layoffs affecting more than 50,000 people at one of the largest ceramic factories in Bekasi, West Java.

Following up on this report, Anwar stated that his office is still conducting further studies regarding the causes and the solutions that will be offered.

“Naturally, we will conduct a review to determine the causes and the necessary mitigation,” he added.

Meanwhile, the Special Advisor to the President of Indonesia for Manpower and Labour Welfare, Said Iqbal, stated that the government has taken mitigation steps to prevent a wave of layoffs in labour-intensive sectors by reducing non-subsidised industrial gas prices.

In a separate statement on Monday (29/6), Said Iqbal noted that this measure is being implemented to ensure that labour-intensive sectors, such as the ceramics, granite, and textile industries, can remain competitive and maintain employment levels.

The Ministry of Energy and Mineral Resources (ESDM) previously estimated that the increase in industrial gas prices affects users who do not receive the Specific Natural Gas Price (HGBT) facility, alongside a decrease in production/lifting in several wells, particularly in West Java.

To cover the supply shortage caused by this decline in production, industries are seeking new sources through Liquefied Natural Gas (LNG) from other regions, meaning logistics costs are also influencing the final price of industrial gas.