The provincial government will continually improve protection and ease in conducting business as means to reduce risk for industrial players to lay off workers due to the global crisis, West Java Governor Ridwan Kamil stated.
“If the market does not exist, it is difficult. There are areas that are not under the control of the bureaucracy, that is already the law of the market. However, we continue to offer protection and ease (in conducting business),” he stated at the Presidential Palace Complex, Jakarta, on Monday.
The governor affirmed that the impact of the global economic recession, expected to hit in 2023, would also pressure the business sector, thereby leading to layoffs.
“Hence, usually, there is an impact from the potential for a global recession next year, but we will compensate with a lot of investment into West Java,” he noted.
Although he did not deny the risk of mass layoffs, he reiterated that the provincial government continued to add job vacancies, so that economic affairs would continue as usual. The increase in employment was conducted by improving the business and its climate, so that investment inflows continue to increase.
“Every year, investment is number one. Last year, Rp136 trillion had generated 136 thousand jobs,” he remarked.
The Manpower Ministry urged everyone to prioritize dialog to avoid termination of employment. They assured their readiness to help everyone in finding the best solution.
“Let us deal with the issue of layoffs in a balanced way by continuing to put forward dialogue with stakeholders, so that layoffs will become the last resort if there is a business crisis,” Director General of Industrial Relations and Labor Social Security at the Manpower Ministry Indah Anggoro Putri stated on November 2, 2022.
Putri said the ministry, along with all Manpower Offices in the provinces, districts, and cities would always be ready to assist in finding the best solution.
She also ensured that the ministry had pursued coordination across ministries and agencies, the employment agency, and relevant partners in monitoring the dynamics and updates of the layoffs issue in the country.
The collaboration lead to discovery, and it was found that layoffs had occurred in several sectors, despite everyone trying to avoid it and sought layoffs as the last resort for industrial relations problems.
According to information, layoffs occurred especially in export-oriented labor-intensive industrial sectors, such as garments, textiles, and footwear.
“However, we still have to cross-check this information and data with that from other ministries and agencies, including the Trade Office, Industry Office, and Manpower Office in each province and district and city,” she remarked.
Some of the causes of current layoffs ranged from the impact of the COVID-19 pandemic that is still apparent, business transformation in the digitalization era, to the global geopolitics situation that compromised the people’s ability to purchase, especially those of countries that are Indonesia’s export destinations.
Source: Antara News