Executive Summary

Key insights and market outlook

Indonesia is experiencing a significant surge in layoffs, with 79,302 workers affected between January and November 2025 ¹

²³. The manufacturing sector has been particularly hard hit, with around 22,000 job losses ¹². Experts attribute this trend to excessive imports due to Minister of Trade Regulation No. 8/2024 and high operational costs including taxes and interest rates. Labor unions warn of continued vulnerability for labor-intensive industries ³⁴.

Full Analysis

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Deep Dive Analysis

Indonesia's Layoff Crisis Deepens: 79,302 Workers Affected Through November 2025

Manufacturing Sector Bears Brunt of Job Losses

Indonesia is facing an alarming increase in layoffs, with official data from the Ministry of Manpower showing 79,302 workers affected between January and November 2025 ¹

²³. This figure has already surpassed the total number of layoffs recorded throughout 2024, which stood at 77,965 ⁴.

The manufacturing sector has been particularly affected, accounting for around 22,000 job losses ¹

². Experts point to several key factors contributing to this trend. Labor expert Timboel Siregar highlights that the implementation of Minister of Trade Regulation No. 8/2024 has led to a surge in imports, making it difficult for domestic industries to compete ¹².

Economic Pressures Compounding Job Losses

In addition to import pressures, Indonesian industries are facing high operational costs that are exacerbating the situation. High bank interest rates, increased tax burdens, and logistical costs are all taking a toll on businesses, particularly in labor-intensive sectors ²

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The World Bank's data showing a 1.1% decline in real wages between 2018-2024 further compounds the issue, reflecting in sluggish household consumption growth of 4.89% in Q3 2025, below the psychological level of 5% ²

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Industry-Wide Impact and Future Concerns

The layoffs are not limited to manufacturing alone. Other sectors such as trade, logistics, technology, and telecommunications are also experiencing workforce reductions ³

. Labor unions are particularly concerned as these layoffs indicate weak protection for domestic industries and a continued vulnerability for labor-intensive sectors ³⁴.