Mass Layoffs in Indonesia: Labor Union Reveals Alarming Statistics

126,160 Workers Affected Since 2023

The Konfederasi Serikat Pekerja Nusantara (KSPN), a prominent Indonesian labor union, has revealed that a total of 126,160 workers have been laid off between 2023 and October 2025. This significant number highlights the scale of job losses in the Indonesian labor market during this period. According to KSPN President Ristadi, the layoffs were primarily driven by several key factors related to business operations and economic conditions.

Six Primary Factors Behind Layoffs

Ristadi identified six main reasons contributing to the widespread layoffs:

1. Reduced Orders/Purchases: Companies faced decreased demand, leading to workforce reductions as part of efficiency measures.
2. Complete Stoppage of Orders: Some businesses ceased operations entirely due to the absence of new orders, resulting in total factory closures.
3. Outdated Production Technology: Firms struggled with outdated machinery, affecting both production quantity and quality, making it challenging to compete due to high operational costs.

The union's findings underscore the difficult environment faced by Indonesian workers and businesses, particularly in manufacturing sectors vulnerable to economic fluctuations and technological challenges. The KSPN's report serves as a critical indicator of the labor market's health and the broader economic conditions in Indonesia.