Indonesia Experiences Sharp Rise in Layoffs Through 2025

Surge in Unemployment Benefits Claims Expected

The number of workers affected by layoffs in Indonesia has surged to 79,302 between January and November 2025, according to data from the Ministry of Manpower's Satu Data platform. This figure exceeds the total of 77,965 recorded for the entire year of 2024, indicating a significant deterioration in employment conditions.

Financial Support for Affected Workers

Workers affected by these layoffs are eligible for the Jaminan Kehilangan Pekerjaan (JKP) benefit, which provides financial assistance equivalent to 60% of their basic salary for a period of six months. This support is crucial in helping workers transition between jobs while maintaining some level of financial stability.

Expert Predictions on Future Trends

Timboel Siregar, Coordinator of Advocacy at BPJS Watch, noted that the increasing number of layoffs will likely lead to a corresponding rise in JKP claims through 2026. "Although the potential for JKP claims has increased this year, it's likely that next year will also see a rise because layoffs will continue to grow - this is indeed a logical consequence," Timboel explained. The prediction underscores the challenging employment landscape ahead and the growing importance of social safety nets for workers.

Implications for Labor Market

The sharp increase in layoffs reflects broader economic challenges facing Indonesia's labor market. As companies continue to restructure and adjust to economic conditions, the government may need to consider additional support measures for affected workers beyond the existing JKP program.