Manufacturing PMI Decline Impacts Workers, Deputy Minister Says

Deputy Minister of Manpower Afriansyah Noor considers the decline in the Manufacturing Purchasing Managers’ Index (PMI) to have an impact on the workforce. However, the government will anticipate this by preparing job opportunities and training for those affected by layoffs. “Training for those affected by layoffs. Reskilling, upskilling that they need,” he said when met at the Greenland International Industrial Center, Cikarang, Bekasi Regency, on Friday, 3 July 2026. Based on data from the Ministry of Manpower, the number of workers affected by layoffs totalled 23,470 people from January to May 2026. However, those recorded are only those participating in the Job Loss Insurance (JKP) programme. Afriansyah said this situation is a consequence of uncertain global economic and geopolitical conditions. Nevertheless, there are still companies undertaking business expansion and reopening employment opportunities, one of which is PT Givaudan Indonesia, which is expanding production in Cikarang, West Java. “Hopefully it will continue and they will open up more opportunities in several regions in Indonesia,” he said. Previously, rating agency Standard & Poor’s Global (S&P) reported that Indonesia’s Manufacturing PMI fell to a level of 46.9 in June 2026. This position was down compared to May, which was at 50.0. S&P Global Market Intelligence economist Usamah Bhatti said Indonesian manufacturing showed a considerable increase in the average cost burden. The rate of input price inflation was the largest since September 2013. Furthermore, the negative demand trend pushed companies to reduce output for four consecutive months, the sharpest decline since April 2025. The reduction in production needs and demand also hampered stock building, so finished goods inventories declined for two consecutive months and at a faster pace than in May. This situation resulted in a reduction in the workforce, with the rate of layoffs in June being the largest since September 2021. “In response to this situation, companies reduced their workforce and purchasing activity massively, while inventories also declined amid weakening demand conditions,” Bhatti said.