State Secretary Discusses Layoff Factors: We Are Trying to Fix Everything

Minister of State Secretary Prasetyo Hadi has detailed a number of factors behind potential layoffs reported to his office. The Layoff Mitigation Task Force stated it is currently implementing various mitigation measures to address the issue. “One of the concrete steps this morning, we discussed many things, companies that experienced incidents years ago where layoffs occurred but the company’s obligations have not been resolved,” Prasetyo said at the parliament complex in Senayan, Jakarta, on Friday (26/6/2026). He noted that the layoff problems identified by his team are not always related to raw material supplies. Pras highlighted internal conflicts within the companies concerned. “There are also potential layoffs, and we mitigate them one by one because layoff problems are not always related to issues like raw material supply, for example gas or coal. Sometimes there are problems that are internal management conflicts within the company. But whatever the cause, it is our duty to jointly carry out mitigation. I think that is the case,” he said. He stated that the potential for layoffs is not confined to a single sector. Prasetyo mentioned there are also external influences on companies that make layoffs a considered step. “As I said earlier, the characteristics are not specific to one sector because the problems are also varied. There are those where demand has fallen. There are also those with problems regarding capital, where capital is stored in a banking institution that is itself problematic,” Pras said. “This then creates problems for the company. Even though the company is actually very healthy. Just because of problems with another party in the banking sector, this also causes issues. So we map everything out in detail one by one,” he added. Pras dismissed the notion that the phenomenon of layoffs is increasing. He stressed that each company has different problems. “No, no increasing trend. What has the potential to increase is related to raw material supply issues. That is influenced by world prices or geopolitical factors, that’s one. Secondly, there are internal management factors within our own country,” Pras said. “For example, regarding gas, there are some in East Java and Central Java that have no problems because the raw material source has no technical issues. However, in West Java, the gas source is experiencing technical constraints. So we study each one and find a solution,” he added. The Layoff Mitigation Task Force is set to collaborate with the Ministry of Trade and the Ministry of Industry. He expressed hope that Indonesia would also reduce its dependence on imported raw materials to minimise the potential for layoffs. “Certainly, certainly global economic factors play a role. When we talk about the economy, all factors are interconnected. Although once again, that is not an excuse. We are trying to fix everything, we are trying to improve everything,” Pras said. “Therefore, we are also coordinating with the Downstreaming and Industrialisation Task Force, including the Ministry of Trade and the Ministry of Industry, to map out which commodities or raw materials we are still dependent on imports for,” he added.