Manpower Ministry Readies Plans to Curb Israel-Iran War Impact on Indonesia's Labor Force

TEMPO.CO, Jakarta - The Ministry of Manpower continues to monitor the developments of the Iran-Israel conflict, especially its impact on the labor sector and layoffs. Minister of Manpower Yassierli mentioned that the Middle East conflict could affect the performance of the domestic industry's exports.

Nevertheless, Yassierli said his ministry has prepared a grand design to mitigate layoffs, one of which is through the optimal implementation of the Unemployment Benefits Program (JKP). "This includes cash aid, training, and assisting with new job opportunities," said Yassierli in a press conference at his office in Jakarta on Tuesday, June 24, 2025.

Moreover, Yassierli also mentioned that the ministry regularly coordinates with the Manpower Offices in each region and establishes cross-ministerial coordination.

The Director General of Industrial Relations and Social Security Development at the Ministry of Manpower, Indah Anggoro Putri, said that by the first week of June, there were already around 30,000 cases of layoffs. But she stopped short of disclosing the exact figures, as the verification by the Manpower Planning and Development Agency (Barenbang) is underway.

The escalation of hostilities between Iran and Israel has been ongoing since June 13, 2025, following Israel's unprecedented attack on Iran. Iran soon retaliated, and the United States meddled by bombing three of Tehran's nuclear facilities on Sunday, June 22. Iran then struck a U.S. base in Qatar the following day.

Deputy Chair of the Indonesian Chamber of Commerce and Industry for Investment, Downstreaming, Energy, and the Environment, Bobby Gafur Umar, said that the Iran-Israel conflict will trigger a surge in energy prices, leading to inflation and a weakened purchasing power. 

Bobby urged the government to anticipate industrial disasters and layoffs. Moreover, global uncertainty has occurred successively since the Ukraine-Russia war, the U.S.-China trade war, and now the Iran-Israel war. "Our raw material needs should not be affected," he said on Thursday, June 19, 2025.

Adil Al Hasan contributed to the writing of this article

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