Wave of Layoffs Hits Hard: Over Half of Companies Reduce Employees

Jakarta, VIVA – The wave of layoffs continues across various sectors, signaling that economic pressures have yet to ease. Many companies are being forced to reduce their workforce due to unavoidable factors.

According to data from BPJS for employment, the number of workers affected by layoffs in Indonesia remains alarmingly high.

In 2024, a total of 257,471 workers were no longer registered as BPJS TK participants due to layoffs, while 154,010 workers filed claims for the Old Age Security (JHT) program after losing their jobs.

As 2025 begins, the trend persists. By March 10 alone, 73,992 workers had already been laid off, with 40,683 filing JHT claims with BPJS TK.

These figures indicate that the wave of layoffs is ongoing and may even escalate in the coming months.

A survey conducted by the Indonesian Employers Association (APINDO) in March 2025 revealed that 52.2% of companies had reduced their workforce over the past year.

Furthermore, 49.7% of companies anticipate the possibility of further layoffs within the next year.

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Ilustrasi warga RI kelas menengah

Photo :

• CNA (Channel News Asia)

The primary drivers behind this wave of layoffs include a 69.4% decline in demand, a 43.3% increase in production costs, changes in labor regulations such as minimum wage adjustments (33.2%), pressure from imported products (21.4%), and the impact of technology and automation (20.9%).

Beyond layoffs, the survey also found that 67.1% of companies have no plans for new investments in the coming year, highlighting the ongoing economic uncertainty.

Based on these findings, it is clear that businesses in Indonesia are under significant pressure.

Many companies are being forced to implement efficiency measures, including large-scale layoffs.

The data comes from the APINDO Business Conditions Survey (March 2025), conducted between March 17-21, 2025, with a sample of 357 APINDO member companies.

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Source : CNA (Channel News Asia)