Airlangga urges businesses to avoid layoffs amid economic shifts

Jakarta (ANTARA) – Coordinating Minister for Economic Affairs Airlangga Hartarto has appealed to businesses to hold off on layoffs in the face of current economc challenges.Speaking at a dialogue with members of the Indonesian Chamber of Commerce and Industry (Kadin), Airlangga said companies should prioritize sustainability over short-term profit and loss calculations.“The government hopes that Kadin entrepreneurs, who have been trained in Magelang with the spirit of Mount Tidar, will not resort to layoffs. Any single layoff contradicts the spirit of Tidar,” Airlangga said at the Kadin Tower in Jakarta on Thursday.Responding to the remarks, Kadin Chairman Anindya Bakrie underlined the importance of creating new jobs to support economic growth above five percent.He noted that Indonesia needs an additional 2.5 to 3 million jobs annually across various industries.“One example is green industrialization, which requires a significant workforce. Another is digitalization, which also demands many workers. For AI labeling alone, a single company may need up to 10,000 workers,” Anindya explained.He also emphasized that President Prabowo Subianto’s priority programs on downstream industries and food security are expected to generate more jobs, particularly in agriculture, livestock, and fisheries.“I see a growing movement of young people turning to farming. Programs such as Free Nutritious Meals will ultimately support agriculture, livestock, and fisheries because they are needed for food supply. The key is ensuring job absorption and entrepreneurship develop more quickly and effectively,” Anindya added.ANTARA noted that the Ministry of Manpower (Kemnaker) had reported that the number of layoffs had reached 26,455 cases as of Tuesday, May 20, 2025.Director General of Industrial Relations and Social Security (PHI and Jamsos) at the ministry, Indah Anggoro Putri stated that Central Java recorded the highest number of layoffs, followed by Jakarta and Riau. Data showed that Central Java accounted for 10,695 cases, Jakarta for 6,279, and Riau for 3,570.She noted that most layoffs occurred in the manufacturing, wholesale and retail trade, and service sectors.