Jakarta, Indonesia Sentinel — Indonesia continues to face a rising tide of unemployment, exacerbated by the closure of numerous factories leading to significant layoffs. This trend poses a serious threat to the nation’s economy, as the increasing number of layoffs diminishes purchasing power and could further destabilize economic growth.
According to the latest data from the Ministry of Manpower, the number of workers laid off in August 2024 surged by 23.72%, reaching 46,240, compared to 37,375 in August 2023.
Five provinces have reported notable increases in layoffs over the past year. Bangka Belitung experienced the highest jump, with a staggering increase of 5,375.76%, resulting in 1,807 laid-off workers, up from just 33 a year prior.
Following Bangka Belitung, Southeast Sulawesi saw a rise of 672.5%, while West Sumatra experienced a 584.91% increase. Jakarta’s layoffs rose by 575.93%, and North Sumatra saw a 498.89% increase.
One of the major contributors to these layoffs is the textile industry. Recently, PT Sinar Panca Jaya in Semarang, a textile manufacturer, announced its closure, leading to the layoff of 340 workers.
“Layoffs are still ongoing. Yesterday, we had another 340 workers laid off at PT Sinar Panca Jaya, which has now completely shut down,” a company spokesperson reported to CNBC Indonesia on September 14, 2024.
Initially, the Semarang plant employed around 3,000 workers, but layoffs have occurred gradually due to a lack of orders.
“We are producing, but we have no buyers,” the spokesperson added.
The closure of PT Sinar Panca Jaya adds to the growing list of textile factories that have shut down in Indonesia since the beginning of 2024.
“We are continuously monitoring the situation and checking in various regions,” the spokesperson noted.
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The impact of these layoffs is deeply felt by the affected workers, who face significant challenges in managing daily living expenses, school fees, and outstanding loan payments.
(Ray)
