Over 280,000 Indonesian Workers Projected to Face Layoffs in 2025

TEMPO.CO, Jakarta - The board of supervisors of the Social Security Agency (BPJS) for Employment predicts that 280 thousand workers will face layoffs in Indonesia throughout this year.

The board mentioned that 24,360 workers have been terminated as of April 2025. 

"Estimates of potential victims of layoffs in 2025 are at around 280 thousand," said chair of the supervisory board at BPJS for Employment, Muhammad Zuhri, during a meeting with the House Commission 9 on Tuesday, May 20.

Zuhri said the supervisory board has requested for BPJS to provide services for laid-off workers, as well as adding more regional branches to help facilitate such services. BPJS was also asked to optimize digital services and create alternative channels to assist workers in claiming Job Loss Insurance.

"The Supervisory Board continuously urges the directorate to provide the best services, especially in the event of mass layoffs," Zuhri said.

On the same occasion, the Chairperson of the National Social Security Council (DJSN), Nunung Nuryartono, announced that per April 2025, there have been 52,850 Job Loss Insurance claims, meaning 13,210 individuals file for insurance each month on average.

Nunung said the number of claims has skyrocketed for the past four years, indicating a "significant number of work terminations."

Data shows that there were 844 claims in 2022, which multiplied the following year into 4,478 claims; in 2024 there were 4,816 claims, and in 2025 it reached a staggering number of 52,850 claims.

Nunung mentioned that the number of Job Loss Insurance participants from January to April 2025 also increased to 2 million individuals. "In the current economic situation, the JKP program not only provides certainty but also a safety net for workers affected by layoffs," Nunung said.

Minister of Manpower Yassierli said 24,036 individuals were affected by layoffs from January to Wednesday, April 23, with Central Java reporting the highest rate of layoffs, with 10,692 workers. This is followed by Jakarta with 4,649 individuals and Riau with 3,546 individuals.

The business sectors that laid off the most workers were the manufacturing industry with 16,801 layoffs, followed by the wholesale and retail trade sector with 3,622 individuals, and other service sectors with 2,012 individuals. 

Data from the Indonesian Employers Association (Apindo) shows that the number of layoffs reached 40,000. The Confederation of Indonesian Trade Unions also recorded that around 23,000 of its members were affected by layoffs during the same period.

Apindo estimates that the number of layoffs will continue to rise up to 70,000 workers by the year's end, which lines up with Ministry of Manpower records of 77,965 layoffs in 2024.

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