Prabowo Administration Moves Swiftly to Anticipate Mass Layoffs

The government is moving quickly to resolve industrial gas supply problems. Two coordination meetings were held today to ensure this issue does not lead to factory closures and decisions on termination of employment. The House of Representatives, together with the government and labour unions as part of the Layoff Mitigation Task Force, held a meeting at the Nusantara III Building in the parliamentary complex, Senayan, Central Jakarta, on Friday. Attendees included Deputy Speaker Sufmi Dasco Ahmad, Deputy Speaker Cucun Ahmad Syamsurijal, Minister of State Secretary Prasetyo Hadi, Minister of Manpower Yassierli, Special Advisor to the President on Employment and Labour Welfare Said Iqbal, and President of the All-Indonesia Workers’ Union Confederation Andi Gani Nena Wea. The meeting discussed information regarding potential layoffs by several companies, particularly in the manufacturing sector. Minister of State Secretary Prasetyo Hadi explained that one key topic was the industrial gas supply issue. He stated that a solution would be decided within one or two days, although further details were not disclosed. ‘In accordance with the president’s instructions to immediately find a solution, we will likely make a decision within one to two days to ensure that activities in sectors requiring gas, especially the industrial sector, can proceed as they should,’ he said after the meeting. Prasetyo also discussed with DPR members and labour unions the information about companies potentially implementing layoffs. ‘Today we are coordinating to map out which companies and what problems exist so that we can take mitigation steps,’ he said. Meanwhile, the Ministry of Energy and Mineral Resources responded swiftly to industry complaints regarding industrial gas prices, which have recently raised concerns about operational sustainability and even the threat of layoffs. Director General of Oil and Gas Laode Sulaeman said that based on instructions from Minister Bahlil Lahadalia, his office immediately held a coordination meeting with PT PGN, SKK Migas, the Ministry of Industry, and industrial users of the Certain Natural Gas Price scheme. ‘Yes, we are discussing gas prices and how, according to his direction, we can resolve the issues related to HGBT,’ Laode said at the Ministry of Energy and Mineral Resources. According to Laode, the meeting was part of the government’s efforts to resolve HGBT implementation issues, including preparing a revision of the ministerial decree on HGBT. ‘Essentially, we are matching upstream supply with industrial demand so that there are no discrepancies that could later be claimed as a supply shortage,’ he said. Laode emphasised that his office wants to ensure the availability of gas for industry remains secure. Therefore, the ministry is conducting a comprehensive mapping of upstream supply capabilities and the needs of each industrial sector. He also clarified that the recent price increase did not originate from pipeline gas prices under the HGBT scheme, but rather from liquefied natural gas prices on the international market. President of the All-Indonesia Workers’ Union Confederation Andi Gani Nena Wa revealed that according to his association’s data, 55,000 factory workers are threatened with layoffs, and one company, PT Granito, has already closed. He also noted that issues surrounding the Work Plan and Budget were discussed, which could potentially threaten the jobs of 150,000 workers. He expressed confidence that the government would act quickly and carefully, and assured that the government is on the side of both workers and employers to find a win-win solution, hoping for a decision on industrial gas and the work plan by Monday.