Executive Summary

Key insights and market outlook

Indonesia saw a significant increase in layoffs in 2025, with 79,302 workers affected between January and November, exceeding the 77,965 recorded in 2024 ¹

²³. Finance Minister Purbaya Yudhi Sadewa attributes this surge to weakening domestic demand and economic slowdown ¹⁴. The government is working to boost the economy through fiscal and monetary policy synchronization ⁵.

Full Analysis

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Deep Dive Analysis

Indonesia's Layoff Surge: Economic Slowdown Takes Toll

Rising Unemployment Numbers

Indonesia's labor market faced significant challenges in 2025, with the number of layoffs reaching 79,302 workers between January and November, surpassing the 77,965 recorded in the same period of 2024 ¹

²³. This increase represents a concerning trend in the country's employment landscape.

Economic Factors Behind the Surge

Finance Minister Purbaya Yudhi Sadewa explained that the surge in layoffs is primarily due to weakening domestic demand and economic slowdown ¹

⁴. The minister noted that during the first 9-10 months of 2025, the economy experienced a slowdown, leading businesses to restrain expansion and implement workforce efficiency measures ⁴.

Government Response and Policy Measures

In response to the rising unemployment, the government is working to stimulate economic growth. Purbaya expressed optimism about future prospects, stating that the economy is expected to improve in the coming year due to synchronization between fiscal and monetary policies implemented by the Ministry of Finance and Bank Indonesia ⁵

. This coordinated approach aims to create new job opportunities and boost economic activity.

Impact on Social Security Claims

The increase in layoffs has directly affected the number of claims filed under the Workers' Loss of Employment Insurance (JKP) managed by BPJS Ketenagakerjaan. By November 2025, the organization had paid out Rp873.78 billion in JKP benefits to over 78,000 workers affected by layoffs ³

. Analysts predict that these claims may continue to rise into 2026 as the effects of the economic slowdown persist ².

References